Charter takes rejected Time Warner Cable bid to investors

Charter Communications Inc on Monday formally offered to acquire larger rival Time Warner Cable for $37.3 billion, sparking what is likely to be a contentious battle for control of the No. 2 U.S. cable operator. The offer was for $132.50 a share. Of that, $83 is in cash and roughly $49.50 is in Charter stock.

However, Time Warner Cable's board of directors quickly rejected the offer, calling it "a third grossly inadequate proposal." Time Warner Cable's CEO Marcus said the company is open to a deal with Charter for $160 a share, or $100 in cash and $60 in Charter common stock.

"Charter's latest proposal is a non-starter," Marcus said in a statement Monday. "Not only is the nominal valuation far too low, but because a significant portion of the purchase price would be in Charter stock, the actual value delivered to TWC shareholders could be substantially lower given the valuation, operational and significant balance sheet risks embedded in Charter's stock."

"In essence, these guys are just trying to get a premium asset at a bargain basement price," Marcus added. "This makes the job of fending it off rather straightforward. Our shareholders will see it as what it is, an attempt to steal the company."

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