Time Warner Cable could be worth $160/share in Comcast/Charter bid

|About: Charter Communications,... (CHTR)|By:, SA News Editor

Wells Fargo analyst Marci Ryvicker looks at what a joint Comcast (CMCSA)/Charter (CHTR) bid for Time Warner Cable  (TWC) would look like, with speculation of such a deal ripe (see here and here).

"There has been much TWC M&A speculation ever since Dr. John Malone took a 27% stake in CHTR in March of this year. Since that time, our view has been (and continues to be) that a break up (rather than an outright purchase by one player) of TWC is most logical; so, we were not surprised by recent press reports suggesting that CMCSA and CHTR might be working together to generate a joint bid for the cable company."

On the value, she writes: "We calculate ~$1.4B of annual synergies for a CMCSA-TWC partial bid, and ~$700M for CHTR for a CHTR-TWC partial bid, leading to a potential bid of $160 for TWC shares."

TWC closed +10% on Friday. CHTR was +6%. CMCSA was +4.4%

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