The US’ second largest cableco Time Warner Cable (TWC) has been urged to talk to smaller rival Charter Communications regarding its takeover offer.
Investment firm T. Rowe Price, which is a significant shareholder in both cablecos, wrote to TWC this…
The US’ second largest cableco Time Warner Cable (TWC) has been urged to talk to smaller rival Charter Communications regarding its takeover offer.
Investment firm T. Rowe Price, which is a significant shareholder in both cablecos, wrote to TWC this week asking the management to enter into talks with Charter, people familiar with the matter told Reuters.
Last week Charter revealed it had been rebuffed by TWC after offering US$132.50 per share – valuing it at US$37.3bn – to take the company over.
TWC’s CEO Rob Marcus described Charter’s bid as a “low-ball offer” and said that the John Malone-backed cableco was trying to force TWC’s board into selling at a “grossly inadequate price”. They want US$160 per share.
Charter has subsequently been on a roadshow meeting with TWC shareholders in a bid to convince them of the value of the offer and to get them to approach TWC’s board, the report said.
The intervention by T. Rowe – which owns 2.3% of TWC and 5.16% of Charter – is reportedly the first intervention in what could become a proxy war.
Charter has previously criticised TWC’s management for failing to engage with its attempts to buy the company. It has been pursuing the New York-based operator since last May, after cable veteran John Malone’s Liberty Media acquired a significant stake in Charter.
