Cablevision’s investors rejected the Dolan family’s $10.6 billion bid to take the company private. The vote was expected, given mounting opposition to the plan, notably from two large investors – Clearbridge Advisors, and private fund manager Mario Gabelli.
Opposition to the bid focused on it being too low, at $36 a share. Some investors said the stock could be worth as much as $50 a share. If nothing else, the failure of the bid underscored the Dolans’ contention that Cablevision’s stock – like that of many of its peers – is undervalued.
In a statement, Chairman Charles Dolan and his son, CEO James Dolan, said they were “disappointed” by the vote. This was the family’s third attempt to take the company private. Cablevision remains a potential takeover target; speculation continues about selling out to Time Warner Cable, which also has franchises in contiguous areas.