Charter and Time Warner Cable discuss sky high bid
Charter Communications and Time Warner Cable (TWC) are in talks over a bid that looks set to exceed the $170 per share predicted by industry analysts, according to the Wall Street Journal.
Charter made a takeover bid – equalling $132.50 per share – for TWC last year, which the latter quickly rejected, calling it “grossly inadequate”.
TWC instead opted for Comcast’s offer of $158.82 per share, but last month this was abandoned following concerns from US regulators that the deal would provide Comcast with an unfair advantage in the cable TV market.
TWC has a market value of $47 billion, and European cable group Altice has also allegedly been in contact with TWC over a potential deal. Sources told local reporters that the two met on Wednesday this week.
Tom Wheeler, chairman of US regulator the FCC, also said this week that although the organisation rejected the Comcast/TWC merger, it is not against future cable deals.
Wheeler did not allude to any particular deal and said that any merger would be assessed on its own merits.