Time Warner Cable: Now the belle of the ball - but U.S. and Gallic admirers carefully sober
Wunderlich notes the WSJ is reporting that Buy-rated Time Warner Cable (TWC) is now in discussions with Charter Communications (CHTR) and European cable operator Altice (ATCEY) regarding a merger - with WSJ viewing CEO Rob Marcus as a willing but disciplined seller. FCC Chairman Tom Wheeler's supposed communication to the U.S. CEOs that it does not have a blanket disposition against cable mergers ameliorates regulatory risk perception, although firm thinks there is a good likelihood that TWC could be divvied up between Charter and Altice with no profligate bidding war or huge regulatory cloud. TWC's still-in-process operational improvement and synergies suggest to firm that the eventual takeout price could be more in the $185-$190 vicinity than the prior oft-cited $170 level.