Charter Communications Inc has made a verbal offer to buy larger rival Time Warner Cable Inc for $62.35 billion, including debt.
Charter is offering to pay $132.50 per share consisting of around $83 per share in cash and its own stock, and is preparing to take its bid to shareholders of Time Warner Cable.
Charter, the No 4 cable operator, said on Monday that it held discussions with Time Warner Cable, which responded that it wanted a higher bid.
Charter stock was down 2.2 percent at $134.22 while Time Warner Cable shares were down 0.96 percent at $132.4.
Time Warner Cable was not immediately available for comment.
Charter said that it had made repeated overtures to Time Warner Cable for more than six months but that the response led Charter to determine that there was no intent to engage in a merger.
Charter said in a letter to Time Warner Cable that the company had unrealistic price expectations.
The smaller rival said it remained open to all options but that it was fully prepared to finalize a deal on an extremely expedited basis.
Charter said Goldman Sachs and Liontree Advisors were lead advisers. Guggenheim Securities was also a financial adviser to Charter.
BofA Merrill Lynch, Credit Suisse, and Deutsche Bank Securities Inc are also financial advisers to Charter, and together with Goldman Sachs, are leading the financing for the transaction. The law firms Wachtell, Lipton, Rosen & Katz and Kirkland & Ellis LLP are also representing Charter.