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Paulson on Time Warner Cable: 'This is a Dream Combination'

NEW YORK (TheStreet) -- Comcast's (CMCSA) $158.82 a share takeover of Time Warner Cable (TWC) is a "dream combination" according to hedge fund Paulson & Co., a large Time Warner Cable shareholder.

"This is the best possible outcome for TWC shareholders," Paulson & Co said in a statement to TheStreet.

"It delivers full value in an all stock deal from the most capable acquirer. The deal is strategic, synergistic and accretive and will likely lead to further gains due to future appreciation in Comcast stock," the fund addded. "This is a dream combination."

Paulson & Co. took a stake in Time Warner Cable after speculation of a takeover began to mount in 2013. The fund holds about 6 million Time Warner Cable shares, according to a statement provided to TheStreet. That indicates the fund with merger arbitrage roots boosted its stake in Time Warner Cable, in recent months.

Paulson & Co. has successfully invested in many recent consolidations particularly mergers among telecommunications firms. The fund has also been a vocal supporter of some consolidations, while it has fought for better offers when it perceives a weak deal.

Paulson & Co. initially opposed T-Mobile's takeover of MetroPCS, however, after the deal was amended to involve less debt, the fund blessed the combination. It remains a large shareholder. The fund also publicly supported Sprint's consolidation by Japanese telecom giant SoftBank, amid a frenzied consolidation that included a competing proposal from DISH Network.

Paulson now is in full support of Comcast's all-stock takeover of Time Warner Cable, one of the biggest consolidations in the industry in a generation.

-- Written by Antoine Gara in New York

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