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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