In their continuing bid to take Cablevision Systems Corp. (CVC) private, controlling shareholders, the Dolan family, increased their bid for the company to $8.9 billion, saying that this was their final offer.
The offer was for $30 per share which was an 11 percent increase over their last bid of $27 per share.
There was a mixed reaction from analysts with some saying that the special committee of independent directors on Cablevision's board would accept it and others that they wouldn't.
Pali Capital analyst Richard Greenfield said in a note to investors "Do Not Let Chuck and Jim Dolan Steal CVC." Greenfield added that he didn't think the board would accept the offer because of the increase in stock price in cable companies since last October.
The analysts that disagreed with that like Thomas Eagan of Oppenheimer and Kathy Styponias of Prudential both said that they believed that the new offer would be accepted.
This isn't the first time the family has tried to take the company public, but before they weren't able to reach an agreement with the special committee in a much more complicated deal. This time, in comparison, it's a straight buying out of the company and taking it private.
The Dolan family control the majority vote through a special class of shares.
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Posted by: bryan elwell | April 8, 2009 2:40 PM | Permalink to Comment