Board shoots down $30-a-share bid
Cablevision late Tuesday rejected the Dolan family’s second offer to take the company private, calling their $30 a share bid too low given upbeat prospects for Cablevision and the cable biz in general.
A special committee of Cablevision’s board which was considering the offer wrote in a letter to the Dolans that the cabler has “a leading presence in some of the country’s most attractive markets” and “is well positioned to address the competitive challenges that exist.”
Wall Street had come out against the bid, worth $8.9 billion, which the Dolan family had bumped up from an original offer of $27 a share — or about $1 billion less. The family that founded Cablevision, runs it, and controls most of its voting shares, made its revised offer last Friday, calling it a last and final bid.
If the Dolans don’t buy the company, it’s more likely than ever to become a takeover target by a larger cabler, like Time Warner, which has long hankered to own the systems.