US cableco Charter Communications is drawing up an offer letter to bid for larger rival Time Warner Cable (TWC), a person with knowledge of the matter told Bloomberg.
The “bear hug” letter will propose a cash and stock offer worth less than US$140…
US cableco Charter Communications is drawing up an offer letter to bid for larger rival Time Warner Cable (TWC), a person with knowledge of the matter told Bloomberg.
The “bear hug” letter will propose a cash and stock offer worth less than US$140 per TWC share, the report said.
It was previously reported that TWC’s management was reluctant to sell to Charter due to the high amount of debt the combined company would hold.
TWC shares opened at US$130.60 today before falling to US$130.85, and then shooting up to US$133.21. The target’s board was said to be prepared to accept an offer between US$150 and US$160.
TWC’s stock has risen more than 40% over the last year and it now has a market cap of around US$37bn.
In late November Charter was said to be preparing a US$25bn financing package – with Bank of America, Barclays and Deutsche Bank – to help fund a bid. Morgan Stanley is reportedly advising TWC.
Comcast and Cox Communications are also said to be interested in bidding for TWC.
