NEW YORK (TheStreet) -- Time Warner Cable (TWC) shares are climbing 3.51% to $163.54 in early market trading on Wednesday as the pay television service provider continues to engage in acquisition talks with France-based Altice SA (ATC), according to Reuters.
Negotiations between the two companies are still in their early stages and it is possible that no deal is reached, according to Reuters sources. Neither company has commented on the reports.
Altice CEO Patrick Drahi announced earlier today that the company purchased a 70% stake in Suddenlink Communications, the country's seventh largest cable company, for about $9 billion as part of the company's plan to expand its presence in the U.S.
Time Warner Cable, the second largest cable company in America, recently put an end to merger negotiations with rival Comcast (CMCSA), the largest cable company in the country, following signals that the merger would not be approved by U.S. regulators due to antitrust concerns.
Altice shares rose 11.16% to EUR 128.50 in European market trading today.
TheStreet Ratings team rates TIME WARNER CABLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIME WARNER CABLE INC (TWC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."