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TIME WARNER CABLE REJECTS $61-BILLION BID FROM CHARTER

January 14, 2014 by · Leave a Comment 

Time Warner Cable has quickly dismissed a $61-billion bid for it by Charter Communications on Monday as “grossly inadequate.” TWC said in effect that it was not considering selling itself but might do so if a bid came in at around $160 per share; Charter’s offer was said to be “in the low $130s.” Charter’s offer was reported to be comprised of $83 per share in cash and $49.50 in Charter stock. But TWC chief Rob Marcus told the London Financial Times, “We have reservations about the value of Charter stock. Our objective, essentially, is to maximize the amount of cash in any deal so that we aren’t subject to the vagaries of their stock price.” He added, “Our house wasn’t for sale, somebody knocked on our door and made a low-ball proposal. They didn’t just do it once, they did it three times,” he said. “It is obvious that what they are trying to do here is buy a premium asset at a bargain-basement price.”