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Pro Analysis

Time Warner shares are going higher even if AT&T deal is blocked, Deutsche Bank says

The Time Warner Center in New York, Oct. 22, 2016
Michael Nagle | Bloomberg | Getty Images
The Time Warner Center in New York, Oct. 22, 2016

Deutsche Bank on Tuesday told investors to buy Time Warner shares because they are worth more than where they are trading now even if the AT&T merger is blocked.

The company's shares are trading at a deep discount to AT&T's $107.50 a share takeover offer as investors see regulatory hurdles.

"We see limited downside if this merger is not approved by regulators," analyst Bryan Kraft wrote in a note to clients Tuesday.

"We see three primary potential outcomes for TWX, all of which yield a higher stock price than today's, in our view."