Cablevision Systems Corp. (CVC) Stock Looses Ground
The Dolan family has raised its bid for Cablevision Systems to $8.9 billion, representatives of the family said on Friday. The family, which owns a controlling stake in the Bethpage-based cable operator, said the proposal represents an 11% premium to its initial offer, and was its "best and final offer" to take the company private.
Shares of the Bethpage-based cable operator traded lower on the news, losing more than 3% in pre-market activity. The stock had been trading above $27 since October, as investors were anticipating a higher bid.
With many cable companies increasing their focus on bundling television, Internet, and phone services, cable prospects are looking brighter. However, given the uncertainty surrounding Cablevision's efforts to go private, the outlook for the company remains unclear and we would remain on the sidelines with the stock.
In October, the Dolans, who control 20% of the company's shares, offered $7.9 billion, or $27 per share, for all outstanding shares. The new offer implies an enterprise value of $20.1 billion, and represents a 25% premium to the stock's closing price on October 6, the day before the initial offer was made. However, it's only a 1.4% premium to Thursday's closing price of $29.60.
The Dolan family said that the ongoing uncertainty created by its efforts to take Cablevision private is potentially harmful to the company, and noted that the special transaction committee of the board of directors does not need any further information to make a decision.
--Richard Jahnke, Briefing.com
Shares of the Bethpage-based cable operator traded lower on the news, losing more than 3% in pre-market activity. The stock had been trading above $27 since October, as investors were anticipating a higher bid.
With many cable companies increasing their focus on bundling television, Internet, and phone services, cable prospects are looking brighter. However, given the uncertainty surrounding Cablevision's efforts to go private, the outlook for the company remains unclear and we would remain on the sidelines with the stock.
In October, the Dolans, who control 20% of the company's shares, offered $7.9 billion, or $27 per share, for all outstanding shares. The new offer implies an enterprise value of $20.1 billion, and represents a 25% premium to the stock's closing price on October 6, the day before the initial offer was made. However, it's only a 1.4% premium to Thursday's closing price of $29.60.
The Dolan family said that the ongoing uncertainty created by its efforts to take Cablevision private is potentially harmful to the company, and noted that the special transaction committee of the board of directors does not need any further information to make a decision.
--Richard Jahnke, Briefing.com
Labels: Cablevision Systems Corp., CVC
posted by Stock Administrator @ 7:24 PM
0 Comments:
Post a Comment
<< Home