dslreports logo
site
spacer

spacer
 
   
spc
story category
Charter Pushing Time Warner Cable Shareholders to Reject Deal
by Karl Bode 08:41AM Monday Mar 31 2014
While they weren't willing to match Comcast's per share offer to acquired Time Warner Cable, Charter Communications continues to keep hope alive that they'll still be able to acquire the company themselves, however likely that is. Charter has yet to pull their nominations for the Time Warner Cable board, made a few months back when the company was laying the groundwork for a more hostile takeover. Charter also appears to be keeping the pressure on Time Warner Cable shareholders:
quote:
"Charter urges TWC stockholders to reject the proposed Comcast merger and demand that the TWC board engage in a full review of its strategic opportunities," the company, in which John Malone's Liberty Media owns a 27 percent stake, said in a regulatory filing...Charter in its Friday filing cited the following reasons for shareholders to reject the Comcast deal: "higher regulatory risk," higher risk of delay and a "flawed" process of negotiating the deal "because of the failure of the TWC board of directors to consider and investigate alternatives."
Should the Comcast offer be rejected by regulators, Charter might consider raising their previous offers.

view:
topics flat nest 
rradina

join:2000-08-08
Chesterfield, MO

Too Late Charter...

Isn't there a penalty if TW rejects Comcast's offer? If so, Charter would need to cover that and come up with a better deal than Comcast. I don't think Charter has the resources to do that. Comcast has much better financials with which to trump Charter's takeover plans.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Too Late Charter...

I did not hear of any penalty for rejection and couldn't fine anything referencing it, but maybe you are correct.
rradina

join:2000-08-08
Chesterfield, MO

Re: Too Late Charter...

I couldn't find anything either. I just assumed there was something to prevent each other from walking away. Once you go public with such deals, there's generally some protection baked into the agreement if one gets cold feet.

The closest I came was:

»www.deadline.com/2014/03/fears-o···e-proxy/

Reading this regarding negotiations, TWC didn't want to pay a termination fee and Comcast didn't want a reverse termination fee. My guess is both have outs if rejected by the FTC and/or shareholders. However, I'd bet there's something that doesn't let either of them walk away -- especially if someone else tries to make a higher bid. That means any potential higher bidders would likely have to cover that clause and make a better offer. IMO, it's just beyond what Charter is capable of doing considering their original bid's financing was relying on selling assets to Comcast to finance the deal. However, talks between Charter and Comcast broke down and Comcast is rumored to mutter that they would just do the deal themselves -- which is what they did.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4

TWC shareholders hardly even listen to ...

...TWC management, why would they pay any attention to Charter's ?
KoRnGtL15
Premium
join:2007-01-04
Grants Pass, OR

Sheesh......

Charter is just like a gnat that won't go away!

djrobx
Premium
join:2000-05-31
Valencia, CA
kudos:2

Re: Sheesh......

Kind of like Charlie Ergen with regards to DirecTV.

Duratecdave

@comcast.net

Wait...

Comcast divested TWC areas in order to buy Adelphia and now they want to buy them.