Morgan Stanley Says Charter Could Pay $140+ Per Share for Time Warner Cable; Leads to Volatility
In a report released Wednesday morning, Morgan Stanley analyst Benjamin Swinburne released a report commenting on acquisitions and consolidation in the cable tv space.
Swinburne noted that Charter Communications (NASDAQ: CHTR) could acquire Time Warner Cable (NYSE: TWC) for $140 per share or more, giving a premium of at least 20 percent for an acquisition. He stated that the merger would lead to cost synergies between $800 and $900 million dollars, and that the new company would trade at roughly 8 times EBITA.
Later on, Swinburne said that Time Warner Cable is the best way to play consolidation in the sapce, and that the company was unlikely to acquire Cablevision (NYSE: CVC) due to lack of growth.
Following the report, Charter shares traded roughly flat at $124.06, while Time Warner Cable traded down 0.79 percent to $112.48, and Cablevision rose 0.91 percent to $18.75.
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