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Breakingviews: Dueling cable guys

Tuesday, Feb 11, 2014 - 03:00

Feb. 11 - Richard Beales and Jeffrey Goldfarb discuss the tactics of Charter Communications boss Tom Rutledge in his hostile $60 bln takeover bid for Time Warner Cable.

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It's not a communications is trying to by Time Warner Cable about sixty billion dollars huge deal. Lot of joking get going on the latest -- so it has proposed no fewer than thirteen new directors to Time Warner cable's board. There's a lot of tactics he with a -- this yesterday there's a lot of tactics and positioning going on in -- -- to start with the idea that you don't know how motivating forces or start the idea that Tom Rutledge the CEO of Charter Communications. Was in line to become the CEO of Time Warner -- -- about a decade ago or a little bit more was passed over her and I'm kind of went off to another. Like you know definitely we gave you lose you would hope that some of the -- because that's been Mozilla but I'm sure you know eagle was a little didn't do that yes he's he's very strategically. Kind of follow me be a strong tactical playbook right on this bill he's co host he hasn't -- he did. Raise the offer a bit and has come up initially qualities and -- anymore. Now right so these nominees have been the latest step as he's nominated a slate of directors. Which you know obviously if he gets on to the right word you know it would be huge -- also brought pressure keeps Time Warner Cable on the back foot. Everything that may be in the works as. We've heard that maybe you know -- talk Comcast. Which would it which would help the financial so let's hope because that by a piece of it which would it. Give just some moneys that would look these seven is still listed the of those deals hugely leveraged our personal Time Warner cable's bigger and harder right yeah so. They're gonna do this deal that we're gonna wind up with debt to Abbott you know based on the numbers without fracturing the synergies it almost six times -- very high. If faking it Comcast commend him by a big chunk of the business it cuts it down close to five times and I becomes a little bit more palatable. So that's another tactic of these important years you know he's he's sort of steadily mobilizing against I wanna -- keeping them on the back -- they have said right they have a number in mind that they -- 160 share which is a low blow a lot more than talk at 130 to fifty. You know you gotta think that as they keep the pressure up. You know that may be you know he gets himself to a deal at some point and there's a lot of rest in this tournament if he's taking a lot of risk in terms of the steps it is taking. There are questions about regulatory issues with Comcast there questions right even if you do get directors on the board -- the -- is the and to. -- responds and have showbiz directors -- -- -- do what you want them to their responsibility is to the Time Warner Cable shareholders at that point and we've seen past situations where. The hostile acquirer has gotten board members and then those border turnaround say actually you know what the president and I and a community give a little more so. It's no guarantee a lot of -- lot of money to get in and pushed through that kind of tactic so. Right so but for now as well as the brain stays ahead -- the he says he's taking all the rights that is winning this strategic battle right yeah definitely. August will thanks Jeff will follow that deal so Time Warner Cable and -- breaking -- you tomorrow.

Breakingviews: Dueling cable guys

Tuesday, Feb 11, 2014 - 03:00

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