It’s a PowerPoint smackdown. Charter just posted one of its own to respond to Time Warner Cable’s slide deck explaining why it rejected the smaller cable company’s cash and stock offer of $132.50 a share or $61.3B (including debt), which it deems “grossly inadequate.” Charter says that shareholders should take the deal while they can because “TWC’s value to Charter is declining, driven by continued customer relationship and triple play subscriber losses and financing costs from further delays.” That contrasts with Charter’s results, expected to “continue to improve, with accelerating growth in 2014.” In rejecting the offer, Time Warner Cable discounts the potential advantages that shareholders would have owning 45% of Charter, the company says. Late last week TWC said that it will outline its operating plans on January 30. To Charter, that “slow response should at best concern shareholders as to what if any strategy exists today, and could reflect yet another delay tactic for a consensual deal.” Charter adds that it is “in contact with TWC shareholders” and its next steps “will be determined by the level of support shareholders demonstrate for this combination at a price that benefits both set of shareholders.”
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