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Tuesday, January 14, 2014

Charter touts benefits of offer for Time Warner Cable, (NASDAQ: CHTR), (NYSE: TWC), (NYSE: TWX)

Charter Communications expects annual synergies of $500 million and other benefits such as tax savings from its proposed acquisition of Time Warner Cable , the company said in an investor presentation posted on its website Tuesday.The No. 4 cable operator is trying to strike a deal to purchase Time Warner Cable and sway its shareholders after three of its offers have been rebuffed. On Monday, Charter took its approach public and proposed paying $132.50 per share, consisting of around $83 per share in cash and its own stock, in a deal valued at $37.3 billion that Time Warner Cable's board rejected.Annual synergies from a deal would grow to $750 million from $500 million over time, Charter said. The combined company would have to take on $20.5 billion in new debt, or $72.16 per share, which would bring it to a leverage ratio of 4.8 times to five times.The combined company may also have to do "swaps and divestitures" to make the regions it serves more efficient, according to one of the slides in the presentation. Some analysts have said that No. 1 cable provider Comcast would be interested in some of Time Warner Cable's markets such as New York, Los Angeles and Dallas.

Charter Communications, Inc. (Charter) provides cable services in the United States, offering a range of entertainment, information and communications solutions to residential and commercial customers. Shares of CHTR traded higher by 2.36% or $3.17/share to $137.39. In the past year, the shares have traded as low as $76.19 and as high as $144.02. On average, 835381 shares of CHTR exchange hands on a given day and today's volume is recorded at 1595240.

Time Warner Cable Inc. (TWC) is a provider of video, high-speed data and voice services in the United States with systems located in five geographic areas: New York State, the Carolinas, Ohio, Southern California and Texas. Shares of TWC traded higher by 3.04% or $4.03/share to $136.43. In the past year, the shares have traded as low as $84.57 and as high as $139.85. On average, 2528440 shares of TWC exchange hands on a given day and today's volume is recorded at 7745915.

Time Warner Inc. (Time Warner) is a media and entertainment company. Shares of TWX fell by 0.02% or $-0.01/share to $65.46. In the past year, the shares have traded as low as $48.84 and as high as $70.77. On average, 4284900 shares of TWX exchange hands on a given day and today's volume is recorded at 4214862.



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