10-23-2016, 09:32 AM
Terms: Time Warner owners will receive $107.50 per share comprised of $53.75 of cash and $53.75 in AT&T stock. A collar is involved, meaning TWX shareholders get 1.437 shares of AT&T should its average stock price be below $37.411 at closing, and 1.3 shares of AT&T should it be above $41.349 (Friday's close for T was $37.49, and for TWX $89.48).
$107.50 offered for a company that has been hovering at a little under $80 for the majority of the year. I don't mind the buy itself, I think Time Warner is a good company and I've been eyeing them myself quite a few times, but the price seems to be way through the roof.
And half with shares, half with cash... so add another 40+ billion to the debt. Not a big fan of this deal.
$107.50 offered for a company that has been hovering at a little under $80 for the majority of the year. I don't mind the buy itself, I think Time Warner is a good company and I've been eyeing them myself quite a few times, but the price seems to be way through the roof.
And half with shares, half with cash... so add another 40+ billion to the debt. Not a big fan of this deal.