Time Warner Cable rejects Charter's $60bn bid as 'grossly inadequate'

Time Warner Cable Time Warner's cable TV arm has been performing well

Related Stories

Time Warner Cable has rejected a $60bn (£37bn) bid from rival, Charter Communications, saying the offer price was "grossly inadequate".

Charter had offered $132.50 a share, with $83 of that in cash and the rest in its own stock, to buy the firm.

It said it was going public with its offer because of a lack of interest from Time Warner's management in its efforts to purchase the firm.

But Time Warner said Charter was trying to buy it for a "bargain" price.

Start Quote

They have not engaged with us. All of the conversations have been one-way”

End Quote Tom Rutledge Charter Communications

"In essence, these guys are just trying to get a premium asset at a bargain basement price," Rob Marcus, chief executive of Time Warner was quoted as saying by the Reuters news agency.

"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."

'Unrealistic price expectations'

Charter said it had made previous offers to buy Time Warner over the past six months, but had been rebuffed.

"They came back to us with a design to be dismissive," Tom Rutledge, chief executive of Charter, was quoted as saying by Reuters.

"They have not engaged with us. All of the conversations have been one-way," he added.

On Monday, Mr Rutledge released a letter he had sent to Mr Marcus, in which he accused Time Warner of having "an unrealistic price expectation".

If the deal were to go ahead, the combined firm would have more than 15 million customers in the US.

The takeover would be the biggest in the sector since 2002, when Comcast acquired AT&T's cable-internet division in a $30bn deal.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Courtyard of the Indian hospiceJerusalem lodge

    The retreat that has hosted Indian pilgrims since the Crusades


  • A Pakistan health worker gives polio vaccine drops to a child in Peshawar, 2012Dropping out

    Parents who refuse to vaccinate their children against polio


  • Spong Togpo glacial lakeIn pictures

    The dangerous beauty of the Himalayas


  • Actress Diane Guerrero.Home alone

    My family was deported while I was at school


From BBC Capital

Programmes

  • A computer generated of image of a robotic probe issued by Lunar MissionClick Watch

    Scientists seek crowdfunding to send probe to the Moon, plus other technology news

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.