May 26, 2015, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
Nov. 8, 2013, 2:47 AM| Nov. 8, 2013, 2:47 AM
Feb. 7, 2013, 5:18 AM
Blackstone (BX) has agreed to acquire a two-thirds stake in 40 shopping malls in the U.S. for $274M and $463M in debt from UBS (UBS) as the private-equity firm adds to its portfolio of grocery-anchored retail property. Kimco Realty (KIM), which manages the centers and owns 18%, will raise its holding to 33% for $61M in cash and $104M in debt. Meanwhile, Blackstone and two partners are buying a business park in south India for 19.5B rupees ($367M).| Feb. 7, 2013, 5:18 AM
Dec. 4, 2012, 9:42 AMGE (GE) is reportedly looking to continue its strategy of offloading non-core assets with the sale of its Swiss consumer lending business in a deal that could be worth as much as 1.5B francs ($1.62B). UBS (UBS) is one of at least two suitors to have made bids for GE Money Bank in an auction. | Dec. 4, 2012, 9:42 AM | 1 Comment
Aug. 11, 2011, 3:55 PM
May 20, 2011, 6:44 AM
May 18, 2011, 11:54 AMA rumor which has Wells Fargo (WFC) buying the brokerage business of UBS faces the hurdle of calming brokers' fears. "When I think of (Wells), I think of credit cards being handed to college kids drunk in Cancun," says a UBS financial adviser. "I'm out," says another. | May 18, 2011, 11:54 AM | 2 Comments