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Dolan Deal for Cablevision Is on the Rocks

Largest shareholder balks as family declines to increase offer

By Kevin Spak,  Newser Staff

Posted Oct 17, 2007 8:18 AM CDT
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(Newser) – The Dolan family bid to take Cablevision private is on the verge of collapse, the New York Times reports, after James Dolan announced last night that the $10.6 billion bid won't be upped, and the company’s largest shareholder balked. ClearBridge Advisors, which owns 13.6% of shares, threatened to vote against the $36.26 a share offer next week, joining other dissenting institutional investors.

The Dolans, who control Cablevision but need 50% of the public shareholders to approve the deal, probably can’t afford to sweeten the pot, the Journal says. But non-institutional investors could still muster the votes to push it though.  “Any investor who has endured the pain of owning cable over the summer is going to be loath to sign up for another dose by voting this thing down,” said one analyst.

James L. Dolan, chairman of Madison Square Garden and CEO and president of Cablevision Systems Corp. cable company, talks during a news conference in this Nov. 15, 2006 file photo, in New York City. Dolan says he will not increase his family's offer to take Cablevision private, endangering the deal....
James L. Dolan, chairman of Madison Square Garden and CEO and president of Cablevision Systems Corp. cable company, talks during a news conference in this Nov. 15, 2006 file photo, in New York City. Dolan...   (Associated Press)
James Dolan, Cablevision's chief executive
James Dolan, Cablevision's chief executive   (Getty Images)
James Dolan, chief executive of Cablevision
James Dolan, chief executive of Cablevision   (Getty Images)
New York Knicks' Nate Robinson (4) breaks up a pass to Maccabi Elite Tel Aviv's Lior Eliyahu (8) during the first half of an exhibition basketball game Thursday, Oct. 11, 2007, at Madison Square Garden in New York. (AP Photo/Frank Franklin II)
New York Knicks' Nate Robinson (4) breaks up a pass to Maccabi Elite Tel Aviv's Lior Eliyahu (8) during the first half of an exhibition basketball game Thursday, Oct. 11, 2007, at Madison Square Garden...   (Associated Press)
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