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Pro Analysis

Top trader Jim Lebenthal buys Time Warner, saying AT&T's offer shows true value

Pedestrians walk past the Time Warner Inc. Center in New York, U.S., on Saturday, Oct. 22, 2016.
Michael Nagle | Bloomberg | Getty Images
Pedestrians walk past the Time Warner Inc. Center in New York, U.S., on Saturday, Oct. 22, 2016.

Trader Jim Lebenthal, whose "Halftime Report" model portfolio is up 26 percent this year, bought shares of Time Warner on Wednesday, saying AT&T's proposed $85 billion takeover has shown the stock is a value even without the consummation of the deal.

"It may seem counter-intuitive to buy TWX after the recent rally and with questions swirling around whether the merger with AT&T will go through. However, it is not often that you have a private market valuation of a stock fully 22% above the current share price," Lebenthal wrote in an email to CNBC PRO.

The trader explains further here: