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)