Barclays keeps an Underweight rating on Charter (CHTR) after the company announced an agreement to acquire Liberty Broadband (LBRDA) (LBRDK) (LBRDA, LBRDK) in an all-stock transaction by issuing 0.236 shares of Charter for every share of Liberty Broadband. The transaction should simplify Charter’s holding structure and “clean up stock technicals,” the analyst tells investors in a research note. The firm also believes simplification of Charter’s holding structure may also ease other strategic considerations. Charter will now be able to resume buybacks in a bigger way beyond the impact of this transaction, adds Barclays.
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Read More on CHTR:
- Charter to acquire Liberty Broadband, Spotify reports Q3 beat: Morning Buzz
- Charter Communications Announces Merger with Liberty Broadband
- Charter to acquire Liberty Broadband in all-stock transaction
- Liberty Broadband CEO Greg Maffei to step down at year end
- Liberty Broadband price target raised to $145 from $105 at Pivotal Research
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