Investors Feel 'Short-Changed' in Dolan's Bid To Take Cablevision Private

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Investors Are Wary Of Buyout Offer For Cablevision [Wall Street Journal]

Summary: A day after New York's powerful Dolan family tried to take Cablevision (CVC) -- the cable-TV and entertainment operator they own 22.5% of and whose board they control 74% of -- private, investors are crying "foul." Says John Linehan, a portfolio manager at mutual-fund company T. Rowe Price Group Inc., which holds more than two million Cablevision shares,"I'm getting tired of management and private-equity firms trying to steal companies from underneath our noses, and I think this is another example of that. Shareholders have been asked to sit through a fairly fallow period of time. As things are beginning to look up, a lot of our upside is being taken away from us." The Dolans would beg to differ: In a letter to shareholders yesterday, they described their $27-a-share offer as "fair." Still, after a fairly rough patch, Cablevision has managed to outperform competitor telecom and satellite-television operators in the battle for video, phone and Internet customers, leading its stock to perform well this year. The Dolans will have to convince a team of two independent directors to accept their bid if they are to take the company private.
Related links: • Full article • Dolan Family Wants To Take Cablevision Out of Wall Street's Watchful Eye • Cablevision Systems Q2 2006 Earnings Conference Call Transcript • Cramer's Take On CVC
Potentially impacted stocks and ETFs: Verizon (VZ), Comcast (CMCSA), Viacom (VIA), Time Warner (TWX)

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