Analysts Optimistic On AT&T-Time Warner Deal
The stock now trades $20 below the offer price with AT&T only trading slightly below the deal collar. Have to agree with Todd Juenger of Bernstein that the stock would trade closer to $100 now if the market believed the deal would obtain regulatory approvals.
Despite a lot of political positioning, the vertical deal doesn't involve competitive issues. For these reason, Time Warner is worth the risk of holding until a more reasonable price can be obtained for the stock.
AT&T: Beware Of Another Deal
Disclosure: Long TWX. Please review the disclaimer page for more details.