Dolans Up Cablevision Ante
Stock quotes in this article:
CVC
Updated from 10:54 a.m. EDT
Cablevision's (CVC Quote) renewed going-private plans gave its shares a lift Monday, as the Dolan family, which controls the Bethpage, N.Y., cable giant, offered to buy out its public stockholders. The Dolans say they will pay $27 a share for the stake. The offer is a 17% premium over the stock's average range in the past two weeks and values the company at about $7.9 billion. Shares of Cablevision surged $2.57, or 11%, to $26.42 Monday on trading volume that was much heavier than normal. To finance the deal, the Dolan family says it will put its 22% interest, or about $1.7 billion worth of stock, into the transaction. Through the equity stake, refinancing and additional loans, the Dolans expect to lay out about $10.9 billion in cash to make the deal. Late Monday, Cablevision issued a statement saying that its board has formed a special committee to evaulate the proposal. The committee, which plans to proceed in a "deliberate and timely manner," hired legal counsel and also plans to retain financial advisers to assist in the review. In June 2005, the Dolans floated their first $7.9 billion take-private plan, which was later sunk by the board. That deal promised to pay stakeholders $21 a share in cash and spin off its media and entertainment properties into a separately traded Rainbow Media venture. The price represented a 24% premium for Cablevision holders. The Dolans have gained a reputation for their somewhat dysfunctional leadership. The highlights include an off-then-on-again go-private plan and, an off-then-on-again special $3 billion dividend that eventually put more than $600 million in the family's pockets in April.- Loading Comments...
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