Breaking News from CNBC's David Faber: Time Warner Cable Has Told Charter It Would Accept $160/Share Bid - Sources
WHEN: Today, Monday, January 13th
WHERE: CNBC's "Fast Money"
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: ANOTHER CHAPTER UNFOLDING HERE IN THIS SAGA THAT WE FIRST BROUGHT YOU LAST JUNE. OF COURSE THAT WAS BACK WHEN WE REPORTED THAT CHARTER AND LIBERTY HAD AT LEAST MADE AN OVERTURE TOWARD TIME WARNER CABLE ABOUT CONSOLIDATION IN THE INDUSTRY AND THE FACT THAT THEY WOULD LIKE TO LEAD IT BY ACQUIRING TIME WARNER CABLE. SINCE THEN, THERE HAS BEEN A LOT OF TALK AND A LOT OF BACK AND FORTH. WE REALLY HADN'T SEEN MUCH UNTIL TODAY WHEN WE GOT A LETTER SENT FROM CHARTER TO TIME WARNER CABLE MEANT FOR SHAREHOLDERS, OF COURSE, SAYING HEY, WE'D LIKE TO HAVE YOU REALLY ENGAGE WITH US ABOUT A POTENTIAL ACQUISITION. BUT NO BID WAS ACTUALLY MADE – REFERENCE WAS MADE TO A PREVIOUS INDICATION OF INTEREST IN THE LOW 130s WITH AN $83 CASH COMPONENT. WE TOLD OUR VIEWERS THAT IN FACT WHAT CAME BACK FROM TIME WARNER CABLE AT THE LATEST MEETING BETWEEN THE TWO ON DECEMBER 27THWAS AN OFFER OF $160 A SHARE. NAMELY TIME WARNER CABLE TELLING CHARTER, YOU WANT US, $160 IS THE PRICE, $100 IN CASH, $60 IN YOUR STOCK WITH A 20% COLLAR. YOU DO THAT FOR US, YOU CAN HAVE US. BUT WE ARE NOT INTERESTED IN ANYTHING BELOW THAT. WE'LL SEE WHERE IT GOES FROM HERE OF COURSE. THEY ARE SETTING UP FOR A POTENTIAL PROXY FIGHT, THE WINDOW FOR WHICH OPENS NEXT WEEK AND CLOSES IN THE MIDDLE OF FEBRUARY. BUT IT IS NOT CLEAR WHO IS GOING TO DO THE BIDDING FOR LIBERTY AND CHARTER IF THEY DON'T PUT A REAL NUMBER ON THE TABLE THAT WILL ACTUALLY CONVINCE SHAREHOLDERS THEY ARE GOING TO BE DELIVERING REAL VALUE TO THEM.
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