Media

Charter preparing offer to acquire Time Warner Cable

Offer is for less than $140 a share, according to sources

A cable truck returns to a Time Warner Cable office in San Diego, California. Charter Communications will send a so-called ‘bear hug’ letter to Time Warner Cable as early as next week. Photograph: Mike Blake/Reuters
A cable truck returns to a Time Warner Cable office in San Diego, California. Charter Communications will send a so-called ‘bear hug’ letter to Time Warner Cable as early as next week. Photograph: Mike Blake/Reuters
Fri Dec 13 2013 - 20:50

Charter Communications is preparing an offer letter to acquire Time Warner Cable for less than $140 a share, according to a person with knowledge of the matter.

Charter will send the so-called “bear hug” letter to Time Warner Cable as early as next week, according the person. However, a another person said the offer, which will include cash and Charter stock, may be below $135 a share. Charter, the fourth-largest US cable company, is attempting to buy Time Warner Cable, the second-largest US cable provider, to gain leverage in future programming discussions with TV networks.

Time Warner Cable would probably accept a bid of $150 to $160 a share, a person familiar with the matter said earlier this month. Alex Dudley, a spokesman for Charter, declined to comment. – (Bloomberg)