Cablevision Board Rejects Dolan Purchase Offer

Jan 16, 2007  •  Post A Comment

A special committee of Cablevision Systems Corp.’s board of directors rejected a $30-a-share offer by the company’s founding Dolan family to take the cable operator private.

The offer was described as “inadequate” in a letter to Charles F. Dolan, chairman and founder of Cablevision and CEO James L. Dolan by the members of the special committee on Tuesday.

A spokesman for the Dolans, who own a controlling stake in the company, said the family had no comment.

The committee said the review process was drawn out because information it needed to evaluate the offer was not provided by the company until late November. The committee also said it had indicated to the Dolans that the offer was inadequate several times.

The Dolans originally offered $27 a share in October for the stock in the company they didn’t already own. The family raised the offer to $30 last week and said it was their “best and final” offer.

Cablevision stock closed at $28.49 before the rejection of the bid was announced. It lost another penny in after-hours trading.

(Editor: Baumann)