Cox joins Time Warner hunt?

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Cox Communications, the third-largest US cable-television operator, is considering joining the potential bidders for Time Warner Cable, reports Bloomberg.

A deal, which be a merger or acquisition, is in the early stages of consideration, apparently. Time Warner Cable, the second-largest US cable company, has become a takeover target as competition from telcos and DTH have focussed cable minds on consolidation.

Charter Communications backed by John Malone’s Liberty Media, is in talks about raising funds for a bid, while Comcast,  the industry #1, has also contemplated a bid, either alone or with Charter’s help.

WSJ has reported that Charter is seeking to arrange $25 billion in debt financing to be able to make a cash-and-stock offer that would include about $90 a share in cash. Takeover speculation has fuelled a 41 per cent gain in Time Warner Cable shares this year.

As part of the discussions, Comcast and Charter are contemplating a breakup of Time Warner Cable as a way to make a deal more palatable to regulators. The move would resemble the joint purchase of Adelphia Communications Corp. by Comcast and Time Warner, which split up the company between them in 2006.


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