US: Time Warner shares fall on worries Trump may block AT&T deal

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.

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