Dec
13
It Begins: Charter Said to Prepare Offer for Time Warner Cable
Posted in: Uncategorized
Charter Communications Inc. is preparing an offer letter to acquire Time Warner Cable for less than $140 a share, according to a person with knowledge of the matter.
Charter will send the so-called “bear hug” letter to Time Warner Cable as early as next week, according the person, who asked not to be identified because the negotiations are private. The offer will include cash and Charter stock, the person said.
It’s called a bear hug letter because it offers a significantly higher price than a company’s shares are worth. They typically come when it’s unclear whether management of the targeted company is interested in selling.
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