Time Warner Cable: Charter (CHTR) challenges CMCSA/TWC deal in proxy fight
Oppenheimer notes Charter (CHTR) is soliciting proxies from TWC shareholders in opposition to the proposed CMCSA merger. The co is urging shareholders to reject the proposed merger primarily on the grounds of higher regulatory risk, subscriber divestitures, as well as the decline in the value of CMCSA stock since the merger announcement. OPCO: This looks like a case of sour grapes on Charter's part, whose offer would still be ~10% below that of Comcast's even accounting for the 13% decline in CMCSA shares over the past few weeks. In any case, the recent pullback in CMCSA shares has been industry-wide and more related to investor concern regarding fiber overbuilds as opposed to anything specifically related to the CMCSA/TWC merger, in their view. They continue to see regulatory risk as manageable and don't expect CHTR to be successful in its challenge of the deal.