Time Warner Cable Inc. (NYSE:TWC) Investors might finally push for a deal that will see the company acquired by Twenty-First Century Fox Inc. (NASDAQ:FOXA) as the stock has in the recent trading sessions been surging in the markets. There waiting, on the other hand, might take some time after the company’s board of directors removed a provision for them to call a special meeting to discuss the same.
The company’s board of directors is reportedly not interested in any form of deal that involves Rupert Murdoch’s Fox, according to Bloomberg’s Jon Erlichman.
“It is not every day that a company that has a friendly shareholder provision in its document would yank that away but that’s essentially what Time Warner is doing. By saying okay: “our board has decided that shareholders are not going to be able to call a special meeting for a period of time.” What they said is they want to reinstate this in time for 2015 annual meeting,” said Mr. Erlichman.
The board maintains that the shareholders will have to wait until 2015 in order to have their provision of holding a meeting reinstated. Erlichman believes that the Time Warner board is trying to make it extremely difficult for Fox to go through with its $75 billion takeover plan. Jeff Bewkes has already reiterated that Time Warner Cable Inc. (NYSE:TWC) is better off without Fox clearly showing it will be a battle, if any deal is to be agreed.
“When we saw Jeff Bewkes react to the Fox offer it is not as if he said this offer undervalues our company, he said we are not interested in doing a deal with Fox,” said Mr. Erlichman.
Jeff Bewkes belief that Time Warner Cable Inc. (NYSE:TWC) does not need Fox could be valid in the sense that since he took office, the company has returned nearly 114% to shareholders compared to Murdoch’s Fox 90%. Time Warner might have outpaced Fox through the showering of shareholders with dividend payments as well as producing more value through spin-offs.
Even with all the good things that have been going well for Time Warner Cable Inc. (NYSE:TWC), Bewkes will need to instill confidence to the investors that the company’s ability to expand its sales, outweighs the cost benefits that do come with a potential merger with Fox.