WSJ: Charter Holds Talks With Lenders To Raise Cash For Time Warner Cable Bid

(RTTNews) - Charter Communications, Inc. (CHTR) has held talks with lenders Bank of America Corp. (BAC), Deutsche Bank AG (DB) and Barclays Plc. (BARC.L, BCS) in an effort to raise cash to make a bid for Time Warner Cable Inc. (TWC), the Wall Street Journal reported, citing people familiar with the situation.

Time Warner Cable has a market capitalization of nearly $35 billion and Charter has discussed a multi-billion dollar debt package with these banks.

Sovereign wealth funds and wealthy individuals also could be another source of cash for Charter Communications, which is supported by its largest shareholder Liberty Media Corp. in the effort.

It is not clear which banks will finally participate in any debt package or how much the company will get from the banks. There is also no guarantee that a bid by Charter Communications for Time Warner Cable will take place, and the timing of any such offer.

The cable-TV industry has been losing television subscribers to satellite operators and phone companies. A merger of the two companies could trigger a fresh wave of consolidation in the industry, which also faces new challenges from online video.

CHTR closed at $126.96 on Thursday, while TWC settled up 0.7 percent at $120.86.