The present offer by Charter is kind of a lowball with offer of $132.50 per share while TWC is looking for a bid between $150 to $160 range. The total Charter offer which also includes stock is $37.4 billion which is just fractionally higher than the current market trading price of TWC share which is $132.4.
Charter, however, says that it is a fair offer keeping in view the reason that the share price of TWC has already appreciated due to its interest in buying TWC.
Charter Communications knows that TWC is not interested in this offer and therefore has written an open letter to TWC shareholders. “Our objective was to talk to management and try to get them engaged. They have not, so we’re going to make our case to shareholders about why this deal is good for them and hope they ask management and the board to watch out for the interests of shareholders, ” CEO of Charter Thomas Rutledge told Bloomberg.
In his open letter to the shareholders of TWC, Rutledge says that the merger of the two companies will lead to a reduction in costs, increased growth and tax benefits.