CABLE’S CHARTER WANTS TO BREAK UP COMCAST–TWC MERGER

Charter Communications, which once tried to buy Time Warner Cable itself, is now urging TWC shareholders to reject the proposed merger with Comcast. In an FTC filing, Charter also appears likely to urge regulators not to approve the Comcast deal. (Even if it is approved, Comcast has indicated that it will sell off systems in areas where it overlaps with Time Warner Cable — which Charter could bid for.) In its filing, Charter also noted that the value of Comcast’s stock-and-cash offer has fallen dramatically since it was made. At the time, it noted, the deal was claimed to be worth $158.82 per TWC share at the time it was announced. However, the value of that merger consideration has declined substantially, and based on the closing price of Comcast stock on March 27, 2014, is now worth $141.16 per TWC share. This value will continue to be exposed to negative trading patterns over the entire pendency of the proposed Comcast merger.” Charter also noted that when it was trying to buy TWC, the board “specifically demanded of Charter $160 per share, and publicly stated that they would not take a penny less than $160 and that the collar was a critical element.”