By Liana B. Baker
Jan 14 Charter Communications sees
annual synergies of $500 million and other benefits such as tax
savings from its proposed acquisition of Time Warner Cable
, the company said in an investor presentation posted on
its website Tuesday.
The company said annual synergies would grow to $750 million
over time. Charter said the combined company would have to take
on $20.5 billion in new debt, or $72.16 per share, which would
bring it to a leverage ratio of 4.8 times to five times.
Charter also said in its 30-page presentation that Charter
would be able to accelerate Time Warner Cable's customer and
cash-flow growth, increase its margins and roll out higher
On Monday, Charter, the No. 4 cable operator, proposed
paying $132.50 per share, consisting of around $83 per share in
cash and its own stock, in a deal valued at $37.3 billion.
Time Warner Cable shares on Tuesday rose 3.1 percent to