The Dolan family’s bid to take Cablevision private has hit another speed bump, but the family has vowed not to increase its offer.
ClearBridge Advisors, a U.S. equity manager owned by Legg Mason, said today it will vote against the Dolan family’s $10.6 billion bid to take the company private. ClearBridge, Cablevision’s biggest institutional investor, said it plans to vote against the Dolan family’s offer of $36.26 a share in next Wednesday’s shareholder vote. ClearBridge owns roughly 13.8 percent of Cablevision while the Dolan family’s stake is currently 20 percent.
ClearBridge is the latest high-profile company to oppose the proposed buyout by the Dolans, who founded Cablevision. On Friday, Mario Gabelli’s investment firm Gamco Investors, which has an 8 percent stake in Cablevision, said it would oppose the Dolans’ offer.
The Dolan family issued a statement on Tuesday that said the family will not raise its offer before the Oct. 24 vote. The Dolans need the approval of 50 percent of the public shareholders to close the deal.
“On behalf of my parents, brothers and sisters, I want to state emphatically that there will be no modification of the family’s accepted offer to acquire Cablevision,” said Cablevision president and CEO James L. Dolan, in a statement. “We are looking forward to next week’s vote and hope that the transaction is approved, but I’d underscore that I am completely prepared to continue to lead the company into the future as a public company if the transaction is not approved.”