Time Warner Cable Stock Rises on Speculation of a Charter Bid
Charter already tried once to purchase TWC for about $132.50 per share, but its hostile bid failed a little more than a year ago.
Shares of Time Warner Cable rose 5 percent Friday on multiple reports that Charter Communications could be readying a bid for its rival.
The Charter news comes the day that Comcast officially withdrew its offer to pay nearly $159 per share to acquire TWC in a planned merger that drew more scrutiny from regulators than Comcast was willing to endure.
Shares of TWC closed $6.50 higher at $155.25 on Friday.
Bloomberg reported on Friday that Charter has already approached banks about financing such an acquisition, though the executives from Charter and TWC haven't actually met to discuss the possibility.
Charter already tried once to purchase TWC for about $132.50, but its hostile bid failed a little more than a year ago
Charter on Friday might also have lost its deal to acquire Bright House Networks for $10.4 billion because that transaction was contingent on Comcast buying TWC. Charter and Bright House, though, might still amend that deal.
If Charter does, indeed, purchase TWC, it will be a case of the smaller company acquiring the larger one: Charter has 4.3 million video subscribers and a $21 billion market cap, while TWC has 10.8 million video subscribers and a $44 billion market cap.
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