Also on Clement’s mind was his tactical ability to place a large block of Cox equity in the market.
Charter Communications was expected to make its initial public offering in the fall.
Because Charter and Cox appealed to similar investors, Clement was concerned that these investors would have less of appetite for Cox shares after the Charter deal had been placed.
Were he to issue equity, he might want to do so before Charter’s IPO.
Clement also had to consider overall market condition.
The equity markets had enjoyed, for almost a decade, a long period of high returns as part of a prolonged economic expansion in the United States, but many pundits warned of an imminent correction in the markets. (See Exhibit 5.)