Charter Reportedly Nears Deal To Buy Time Warner Cable For $55.1 Bln

(RTTNews) - Charter Communications Inc. (CHTR) is nearing a deal to buy fellow U.S. cable operator Time Warner Cable Inc. (TWC) for about $55.1 billion in cash and stock, Bloomberg reported Monday, citing people familiar with the matter.

Charter will pay about $195 per share with $100 in cash and the rest in its own stock, Bloomberg quoted the people as saying. The deal value of $55.1 billion is for Time Warner's equity. Charter also will assume debt in the deal.

The deal could be announced as soon as Tuesday, the people told Bloomberg.

Bright House Networks, a smaller cable company that Charter is trying to buy, will also be merged into the combined entity, Bloomberg said.

Now, Charter has a second chance since Comcast Corp. (CMCSK, CMCSA) abandoned its $45 billion merger with Time Warner Cable last month amid mounting regulatory scrutiny. In January 2014, Charter had proposed a takeover of Time Warner Cable at $132.50 per share in cash and stock. Before the Comcast deal was struck, Time Warner Cable rejected Charter's proposal and said it would only be willing to accept $160 per share, with $100 in cash.

Charter shares closed Friday's regular trading session at $175.33, down $3.32 or 1.86%, while Time Warner Cable shares closed Friday at $171.18, up $5.66 or 3.42%.