January 14, 2014 / 4:35 PM / 4 years ago

Time Warner Cable shares top Charter Communications' offer price

Jan 14 (Reuters) - Time Warner Cable Inc shares rose above the price of $132.50 per share offered on Monday by smaller rival Charter Communications Inc, a deal that was swiftly rejected by the No. 2 U.S. cable TV operator.

Time Warner Cable’s shares were up 3 percent at $136.40 on Tuesday morning, suggesting some investors expect a higher bid.

Calling the bid “grossly inadequate,” Time Warner Cable rejected the $37.3 billion offer, the third attempt by Charter to acquire the company.

Analysts said Time Warner Cable’s demand of $160 per share was reasonable and Charter could raise its bid.

“...We believe something in the neighborhood of 10 percent near-term upside (for Time Warner) if an agreement at TWC’s asking price of $160 were to be announced is reasonable,” Stifel Nicolaus analyst Christopher King said in a note.

Charter’s Chief Executive Tom Rutledge said the company now planned to take the deal directly to Time Warner Cable shareholders.

Charter proposed to pay around $83 per share in cash and the rest in its own stock. Including debt, the deal is worth about $62.35 billion.

Charter shares were up about 1 percent at $135.38 on the Nasdaq. (Reporting by Chandni Doulatramani in Bangalore; Editing by Kirti Pandey)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below