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8 <br /> The following table compares relative labor rates, in hours, between TWC and CVI to perform <br /> similar installation activities. <br /> Table A <br /> Installation Rate Comparison <br /> .......... <br /> ...............I............ <br /> .......................... . <br /> . . . ............. .. <br /> .................... <br /> M <br /> ..... .... <br /> . ... ........ Aow: C. .......... <br /> fim <br /> on" I <br /> Unwired Home 0.95 1.56 <br /> Prewired home 0.80 0.93 <br /> A/0 @ installation 0.67 0.31 <br /> A/0 with truck roll 0.80 1.00 <br /> Outlet relocation 0.67 0.50 <br /> Outlet relocation w/truck roll 0.80 0.63 <br /> VCR @ installation 0.69 0.63 <br /> A/B switch @ installation 0.69 1.00 <br /> Aerial to underground 2.00 2.50 <br /> Financial Aspects of the Deal <br /> The acquisition will require TWI to pay Alan Gerry, $900 million for CVI's equity and <br /> assume $1.8 billion in debt. To finance the deal TWI will issue $600-$800 minion in stock. <br /> Therefore, it is with purpose that Time Warner is attempting to divest itself of assets, such as <br /> its 18-24% share in Turner, to improve its balance sheet. The deal to acquire Cablevision <br /> Industries will cost TWI $2.7 billion. The financial community was reportedly [Multichannel <br /> News February 13, 1995] concerned about the company's ability to absorb $8.5 billion worth <br /> of cable system acquisitions. Time Warner stock on June 28, 1995 traded $2.00 below its 52 <br /> week market high, $43.50. <br /> In this area, it is reported that Time Warner is negotiating to purchase Star Cable properties in <br /> North and South Carolina as well as Virginia. Recently completed are purchases of Summit <br /> Communications Group in Winston-Salem and Vision Cable in Charlotte. <br /> Typically, cable television acquisitions are fueled by debt financing. TWC must not only <br /> borrow funds to buy desirable cable properties, but also secure funds to upgrade the cable <br /> distribution network. <br /> 6 <br />