Charter Communications Inc is almost at the end of a debt agreement to raise USD25 billion. The fund will be used to acquire Time Warner Cable Inc, according to a person familiar with the matter. The said unnamed source was cited in a report published by Bloomberg. Based on the said amount, Charter could bid for Time Warner at USD90 per share in cash, considering Time Warner's shares outstanding. Charter currently has a market value of around USD14 billion, the report said.
The said transaction would combine the second- and fourth-largest cable firms in the US. The merged company would have over USD63 billion in debt when taking into consideration the current balance sheets of both Charter and Time Warner, the report stated.
Meanwhile, Charter has also discussed a possible joint bid with Comcast Corp, the largest cable firm in the US, according to sources familiar with the situation. Comcast had also thought about making a solo bid for Time Warner, like Cox Communications Inc had. Cox is the third-largest cable service in the US, Bloomberg reported.
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