Feeds

Chuh! 'Grossly inadequate': Time Warner Cable rejects $62bn hostile takeover bid

Would-be suitor Charter vows to go direct to shareholders

Security for virtualized datacentres

Time Warner Cable has rejected a hostile takeover bid from Charter Communications, calling its $62bn offer "grossly inadequate".

Charter yesterday formally offered to buy up its rival for $132.50 a share, including $83 in cash and the rest in its own stock, after months of acquisition talks between the companies. But Time immediately rejected the price, which was just higher (by 25 cents) than its price at the close of trading on Monday.

Charter has now said that it is going to take its deal directly to the company's shareholders, bypassing the board.

In a letter the company made public, Charter chief Tom Rutledge said that Time had rejected proposals in June and October last year and "refused to engage" until December. After that, negotiations appear to have gotten stuck on price.

"You came back with a verbal offer at an unrealistic price expectation which ignores a full 39 per cent premium already reflected in Time Warner Cable's stock (as of last Friday), widespread shareholder endorsement of a deal, and Time Warner Cable shareholders' approximately 45 per cent ownership in the upside of the proposed transaction," Rutledge complained.

He claimed that Time's shares had already lifted, showing investor interest in a deal, but there was "no genuine intent" from the company's management or board to sort out a merger.

Time Warner Cable CEO Rob Marcus told Reuters in an interview that he didn't think shareholders would go for the deal.

"In essence, these guys are just trying to get a premium asset at a bargain basement price," he said. "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."

He added that the board was open to a price of $160 per share, made up of a hundred dollars in cash and another $60 in Charter stocks. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.