Charter Bids $62bn For Time Warner Cable

Cable TV operator Charter Communications (NasdaqGS: CHTR - news) is planning to go direct to shareholders of Time Warner Cable (NYSE: TWC - news) in a bid to buy its larger rival in a deal worth over $62bn (£38bn), when debt is included.

The company said it was prepared to make an offer to investors after determining there was "no genuine intent" from Time Warner Cable's management to engage in merger talks.

Charter Communications said it has made repeated overtures to Time Warner (NYSE: TWX - news) for more than six months and had previously planned an offer below $135 per share, including $83-per-share in cash.

That values Time Warner at up to $38bn but the company had responded that the sum undervalued its business, Charter said.

Its statement said: "Time Warner Cable's response led Charter to determine there is no genuine intent from Time Warner Cable's management and Board of Directors to engage in a merger agreement, and that it is prudent to bring the matter to shareholders directly."

Charter said in a letter to Time Warner Cable that the company had unrealistic price expectations and Goldman Sachs (NYSE: GS-PB - news) and Liontree Advisors were lead advisers on its bid.

Time Warner shares were up slightly from their closing price to $134.60 in after-hours market trades.

US cable television and internet titan Comcast is also seen as potential suitor of Time Warner Cable, which has been losing TV customers in a competitive US market.

A tie-up with Charter would create the third-largest pay TV operator.

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