Warner cable subsidiary may redeem equity interest
EmptyNEW YORK -- Time Warner Cable Inc. said Wednesday it is mulling a possible proposal that would allow one of its subsidiaries to redeem a portion of its non-voting equity interest owned by Time Warner Inc.
In a Securities and Exchange Commission filing, Time Warner Cable said its board of directors appointed a special committee last week to look into any proposal Time Warner might make that would result in the sale of part of the parent's 12.43% stake back to the subsidiary, TW NY Holding.
Time Warner Cable said the interest was valued at about $2.9 billion in 2005.
Time Warner Cable said it would finance the transaction through its existing revolving credit facility or by "accessing the bank credit or debt capital markets."
Parent Time Warner would still own an 84% stake in Time Warner Cable's common stock if the deal is completed.
Time Warner Cable shares fell 73 cents to close at $33.45.