Charter execs thrashed the No. 2 cable operator’s systems and management in a call last night with Wall Street analysts to lobby for their $61.3B (including debt) takeover offer. And Time Warner Cable just responded by posting — wait for it — a PowerPoint presentation. It repeats its claim that Charter’s $132.50-a-share cash and stock offer is “grossly inadequate.” And it adds that Charter’s criticisms “reflect a fundamental lack of understanding of our operations and strategy” that TWC will address “in due course.” In response to Charter’s claim that TWC has too many bandwidth-hogging analog channels — leaving too little capacity for HD and advanced services — the document notes that its systems provide an average of 179 HD channels. It’s all-digital in New York City and is “in the process of going all digital in other markets.” For the most part, though, the presentation argues for a higher price: $160 a share including $100 in cash. Charter’s offer values TWC at 7.2 times its estimated 2014 cash flow — although the market values Charter’s stock at 9.4 times cash flow. Even at $160 a share, TWC would just be valued at 8.2 times cash flow. The presentation also says that TWC deserves a premium price compared to other recent cable deals because its so big, controls top markets including NYC and Los Angeles, and offers “significant synergies.”
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