Trading in Time Warner Cable Inc. (TWC) stock reflects concern that regulatory approval of Comcast Corp. (CMCSA)’s acquisition won’t be as quick or clean as anticipated.
The difference between Time Warner Cable’s stock price and what Comcast promises to pay shareholders when the deal closes has more than doubled since April, reaching its widest point of 7.75 percent on Sept. 30, data compiled by Bloomberg show. It stood at 7.59 percent at yesterday’s close.
A decision by regulators to extend a review of the deal and opposition by large companies such as Netflix Inc. and Discovery Communications Inc. have fueled the pullback. There was a sense early on that Comcast’s lobbying and ties to the Obama administration meant serene passage, said Christopher Pultz, head of merger arbitrage for Kellner Capital in New York.
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