Liberty Broadband Corporation (NASDAQ:LBRDA) (NASDAQ:LBRDK) shares climbed Tuesday after the company announced it communicated a counterproposal to the special committee of the board of directors of Charter Communications, Inc. (NASDAQ:CHTR).

The Details: Liberty Broadband announced on Monday it had outlined the terms of a proposed combination with Charter in an all-stock transaction intended to be tax-free whereby holders of each series of Liberty Broadband common stock would receive 0.2900 of a share of Charter Class A common stock.

According to the terms of the counterproposal, Charter would assume or refinance Liberty Broadband's debt at or prior to closing as well as Liberty Broadband's outstanding preferred stock. The proposed transaction includes a closing date of June 30, 2027, or such earlier date as the parties shall mutually agree.

"Liberty's proposed transaction would rationalize the dual corporate structure between Charter and Liberty Broadband, providing enhanced trading liquidity and removing Liberty Broadband's existing governance rights. The certainty of a future transaction would provide clarity to our shareholders and continue our strong partnership with Charter in the interim," said Greg Maffei, Liberty Broadband president and CEO.

Liberty Broadband's shares climbed higher on heavy volume Tuesday with more than 1.3 million shares traded in the session, according to data from Benzinga Pro.

LBDRA Price Action: According to Benzinga Pro, Liberty Broadband shares ended Tuesday's session 28.39% higher at $76.87.

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