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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

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: