AT&T and Time Warner sceptics dial back shares
Wall Street added its voice to the scepticism surrounding the AT&T’s $85.4bn (£69.8bn) bid for Time Warner yesterday.
Shares of Time Warner fell by almost three per cent last night in New York, well under AT&T’s offer of $107.50 a share, while shares of AT&T dropped almost two per cent ahead of last night’s US market close.
The share price falls suggest investors are concerned the deal may collapse with politicians, financial institutions, and media rivals all attacking the deal since it was announced on Saturday evening.
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The credit-rating agency Moody’s yesterday warned it was reviewing AT&T for a downgrade because of doubts over the merger.
The deal values Time Warner at a 20 per cent premium on its closing price on Friday ahead of the bid being announced.
Meanwhile the boss of AT&T rival T-Mobile John Legere told CNBC on he believes that AT&T is “bleeding” and claimed that in five years T-Mobile would surpass AT&T as the largest US mobile carrier.
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T-Mobile’s share price jumped yesterday, up almost 10 per cent in New York after it posted better-than-expected quarterly profit and added more contract customers.