CNBC's Faber: Sources say Altice working on offer to buy Charter
- Proposal not yet made to Charter or its advisers
- Liberty's Malone said to be wary of accepting Altice paper as part of any deal
Quick Comment : Charter, with $60 billion in debt and an expected purchase price that could reach or exceed $500 a share would represent an enterprise value of almost $200 billion. While Altice operates at higher levels of leverage than Charter and would be expected to add two turns of leverage to the $16 billion in cash flow it receives from Charter in the deal, those additional borrowings would not be near enough to fund a large cash component.