Time Warner Cable’s Share Price Slips As Talk Of Merger With Charter Cools

Investors like the consistent reports that Charter Communications is prowling for acquisition targets, especially now that it’s backed by Liberty Media which recently paid $2.6B for a 27% stake in the cable operator. But some are less sure than they were late last week that Time Warner Cable will be a target. Shares in the No. 2. cable company slid 2.5% to $101.29 today. That’s just a slight retreat after Friday’s 8.3% jump to a 52-week high of $104.13, which followed a CNBC report that Charter has its eye on a transformational deal with Time Warner Cable. Liberty Media CEO Gregg Maffei met with TWC chief Glenn Britt recently to talk about the benefits of of a merger of equals, CNBC’s David Faber reported. Although there was no offer, Faber said that TWC decided to “re-engage with longtime advisor Morgan Stanley and hire an outside PR firm in case it needed to defend against a more public onslaught.” Investors don’t rule out the possibility that Charter, which has a market value of $11.9B, will make a bold effort to combine with TWC, valued at $29.5B. But many believe Charter probably would start off looking for smaller targets such as Cox, Mediacom, or Suddenlink. That was also a recurring theme in conversations at last week’s annual Cable Show in D.C. Charter was +1% today to $117.72 after its 5.6% bump on Friday. Most cable companies “are trading on deal speculation,” says Moffett Research’s Craig Moffett. Investors expect a consolidation wave as private equity firms that bought big stakes look for an exit plan and because only large companies “can stand toe-to-toe with the programmers.”

This article was printed from https://deadline.com/2013/06/time-warner-cables-share-price-slips-as-talk-of-merger-with-charter-cools-522830/