18 February 2014 by HCM
The communication sector in the US has moved broadly in line with the rest of the market over the last week, tightening gently along the way. There are 2 noticeable exceptions though, as M&A is raging in the cable industry. TWC (Time Warner Cable Inc) has fallen for CMCSA (Comcast Corporation) in an all-stock deal after having been courted by Charter Communications. The spectrum of leverage going away has enabled TWC’s risk premium to tighten significantly and to be more than halved since last Wednesday. But Charter Communications may not lick its wounds for long before trying to grab another piece of the consolidating cable industry. COXENT (Cox Communications, Inc) may be an attractive consolation price for Mr Malone. On the back of these speculations, COXENT’s risk premium has increased by 50% in 5 trading sessions.