Time Warner Cable’s hard position on the price for...
Time Warner Cable’s hard position on the price for which it would agree to a Charter buy is “a polite way of saying they're not interested,” said MoffettNathanson analyst Craig Moffett in an interview Thursday. Although TWC has said an…
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offer of $160 a share would get the deal done, that price is far away from Charter’s offer of $132.50 a share, and isn’t realistic, according to Moffett. TWC asking for that level of compensation is “like saying you're waiting for a unicorn to walk into the room,” Moffett said. Not all analysts agree, however. “It’s a dance,” said Medley Global Advisors analyst Jeff Silva in an interview. While Charter and TWC’s positions appear set in stone now, it doesn’t mean they won’t end up negotiating later, Silva said. Fletcher Heald cable and transactional attorney Thomas Dougherty had told us that TWC is likely hoping for another bidder to drive its eventual sales price up (CD Jan 15 p9), but Moffett disagrees. TWC’s lack of negotiation may indicate that the company is not looking for a buyer, he said. Liberty Media, which owns a substantial stake in Charter, released a statement Thursday from Chairman John Malone supporting a Charter/TWC deal. “The proposed consolidation of Charter and Time Warner Cable, under the respected operational leadership of Tom Rutledge, will enable the cable industry to adopt common technology, brands and service offerings providing the scale necessary to compete in today’s marketplace,” Malone said. Liberty’s support is unlikely to have much effect on the deal, Moffett said, but may be an attempt by Charter and Liberty to keep the deal proposal fresh in the minds of TWC shareholders. “People are getting bored,” Moffett said. “Somebody is going to have to move their position.” Any such deal would need to be resolved by mid-February to allow TWC shareholders to vote on it, Moffett said. However, missing that deadline wouldn’t end the prospect of a deal. “It’s not like if it doesn’t happen this time it’s going away forever,” Moffett said.