Time Warner Cable chief rejects Charter's 'low-ball offer'

Time Warner Cable has rejected a takeover offer from Charter Communications valued at more US$61 billion including debt, spurning the biggest unsolicited bid since 2008.

Time Warner Cable chief executive Rob Marcus called the US$132.50-a-share bid a "low-ball offer" on Monday.

The proposal included about US$83 cash per share and about US$49.50 in stock, according to Charter. Excluding debt, the deal would be worth about US$37.3 billion.

Charter, backed by John Malone, is seeking to create a provider of television, internet and telephone services for about 20 million subscribers in 38 American states. The combined company would be the third-largest pay-television operator by customers - behind Comcast and DirecTV - helping it generate cost savings and negotiate better programming deals.

"We haven't received a serious response," said Tom Rutledge, Charter's chief executive. "Our objective was to talk to management and try to get them engaged. They have not, so we're going to make our case to shareholders about why this deal is good for them and hope they ask management and the board to watch out for the interests of shareholders."

Charter sent a letter to Marcus on Monday explaining why the company's offer was beneficial for shareholders. Rutledge said he last proposed an acquisition late last month.

Time Warner Cable's board rejected Charter's offer, calling it "grossly inadequate".