Time Warner Cable (TWC) has rejected a USD62.35 billion bid from rival cableco Charter Communications, saying the offer price was ‘grossly inadequate’. Charter had offered shareholders USD132.50 per share, with USD83 of that in cash and the rest in its own stock, in a deal that would have given TWC shareholders 45% ownership of the combined company. Charter said that it was forced to go public with its offer because of a lack of interest from Time Warner’s management in its efforts to purchase the firm.
TWC CEO Rob Marcus told Reuters: ‘In essence, these guys are just trying to get a premium asset at a bargain basement price. This makes the job of fending it off rather straightforward. Our shareholders will see it as what it is, an attempt to steal the company.’ Nevertheless, Marcus has indicated that TWC is open to an offer of USD160 per share, consisting of USD100 in cash and USD60 per share of Charter’s stock.