Bloomberg News
Charter Communications Inc. ( CHTR:US) is preparing an offer letter to acquire Time Warner Cable Inc. for less than $140 a share, according to a person with knowledge of the matter.
Charter will send the so-called bear hug letter to as early as next week, according the person, who asked not to be identified because the negotiations are private. The offer will include cash and Charter stock, the person said.
Time Warner rose 1 percent to $132.37 as of 10:39 a.m. in New York today. The shares have gained this year through yesterday on speculation that a takeover bid is coming. Charter gained 2 percent to $134.99 today.
Charter, the fourth-largest U.S. cable company, is attempting to buy Time Warner Cable, the second-largest U.S. cable provider, to gain leverage in future programming discussions with TV networks. Time Warner Cable, would probably accept a bid of $150 to $160 a share, a person familiar with the matter said earlier this month.
Comcast Corp. and Cox Communications Inc. are not part of Charter's offer, the person said. Comcast, which had discussed a joint-deal that would have it split up the assets with Charter, is monitoring Charter's moves, another person said.
Alex Dudley, a spokesman for Charter, declined to comment as did John Demming, a spokesman for Comcast, and Todd Smith, a spokesman for Cox.
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net
Posted by Unknown on Friday, December 13, 2013 - Rating: 4.5
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