Shares of Time Warner fell more than 2 percent on Wednesday on concerns that US President-elect Donald Trump will make good on his vow to block a proposed $85 billion acquisition by AT&T.
Trump said in October that the telecommunication company’s proposal to buy the owner of HBO, CNN and the Warner Bros film studio was an example of a “power structure” rigged against him and voters.
Time Warner shares were some 24.5 percent below the implied value of AT&T’s $107.50 per share cash-and-stock offer in early trading on Wednesday, compared to a just under 22 percent discount at Tuesday’s close, indicating greater investor skepticism that the companies will be able to complete the transaction.
Dealmakers said there will be an immediate slowdown in mergers and acquisitions as companies and advisers seek clues on how Trump’s antitrust enforcement policy will take shape and who he will choose to lead the Justice Department’s antitrust division and the Federal Trade Commission.
“I think a lot of deals will hit the pause button for a bit until we get some clarity on whether President Trump will moderate or be as disruptive as some expect,” said a senior Wall Street banker who asked not to be named because he was not authorized to speak with the media.
“It’s going to be a tough environment for everything until we see how [Trump] behaves as a leader,” the banker added.
Full Content: Investing
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Federal Antitrust Trial Explores Potential Impact of Tapestry-Capri Merger
Sep 12, 2024 by
CPI
Australia Targets Big Tech with New Fines for Misinformation
Sep 12, 2024 by
CPI
Mastercard to Acquire Cybersecurity Firm Recorded Future for $2.65 Billion
Sep 12, 2024 by
CPI
Ireland Prime Minister: Apple’s €13 Billion Payment Could Fund Housing and Capital Projects
Sep 12, 2024 by
CPI
Regulators Probe Swisscom’s $8.8 Billion Vodafone Italia Deal
Sep 12, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
Francisco Javier Núñez Melgoza
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
Julio Garcia
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
Alejandra Palacios Prieto
The Cost of Making COFECE Disappear
Sep 3, 2024 by
Mateo Fernández