Mel
6-20-05, 1:37 PM
Dolans offers to take Cablevision private
NEW YORK (Reuters) - Cablevision Systems Corp.'s (CVC.N: Quote, Profile, Research) controlling shareholders, the Dolan family, on Monday offered to take its cable business private in a $7.9 billion deal that would also spin off its television networks and sports teams into a publicly traded company.
Cablevision shareholders would get $21 a share in cash for the cable operations, which would be one of richest valuations on a per-subscriber basis in the cable industry in recent years. Shareholders would also get shares in a new publicly traded Rainbow Media.
That spin-off would include three cable channels -- American Movie Classics, Independent Film Channel, Women's Entertainment -- some regional sports channels, the New York Rangers hockey team, the New York Knicks basketball among other assets.
Assuming the Rainbow Media assets are worth $12.50 a share, the company said the total value of the offer is $33.50 a share, a premium of nearly 25 percent over Friday's closing price and 6 percent above the stock's 52-week high.
In morning New York Stock Exchange trade, Cablevision shares rose 23 percent to $33.34, just under the premium offered by the Dolans.
More... http://today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-06-20T161204Z_01_N20499651_RTRIDST_0_BUSINESS-MEDIA-CABLEVISION-DC.XML
NEW YORK (Reuters) - Cablevision Systems Corp.'s (CVC.N: Quote, Profile, Research) controlling shareholders, the Dolan family, on Monday offered to take its cable business private in a $7.9 billion deal that would also spin off its television networks and sports teams into a publicly traded company.
Cablevision shareholders would get $21 a share in cash for the cable operations, which would be one of richest valuations on a per-subscriber basis in the cable industry in recent years. Shareholders would also get shares in a new publicly traded Rainbow Media.
That spin-off would include three cable channels -- American Movie Classics, Independent Film Channel, Women's Entertainment -- some regional sports channels, the New York Rangers hockey team, the New York Knicks basketball among other assets.
Assuming the Rainbow Media assets are worth $12.50 a share, the company said the total value of the offer is $33.50 a share, a premium of nearly 25 percent over Friday's closing price and 6 percent above the stock's 52-week high.
In morning New York Stock Exchange trade, Cablevision shares rose 23 percent to $33.34, just under the premium offered by the Dolans.
More... http://today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-06-20T161204Z_01_N20499651_RTRIDST_0_BUSINESS-MEDIA-CABLEVISION-DC.XML