Morgan Stanley Analyst 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

could acquire Time Warner Cable

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

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.