Cablevisions' Largest Shareholder Opposes Buyout -- WSJ

The Wall Street Journal reports sources say Cablevision Systems' largest shareholder, ClearBridge Advisors, is set to vote Oct. 24 against the Dolan family's $10.6 billion cash bid ($36.26/share) to take the company private. ClearBridge's Legg Mason Partners Aggressive Growth fund owns around 14% of Cablevision and a combined 20% with other shareholders who have publicly opposed the buyout, including Gamco Investors, T. Rowe Price and Marathon Asset Management. The Dolans, who also own around 20% of Cablevision, but in a separate non-voting class of shares, need at least 50% shareholder approval. Cablevision CEO James Dolan issued a statement late Tuesday saying his family "wants to state emphatically that there will be no modification of the family’s accepted offer to acquire Cablevision." In addition, Mr. Dolan said he is "completely prepared to continue to lead the company into the future as a public company if the transaction is not approved." Sanford C. Bernstein cable analyst Craig Moffett warns Cablevision shares may fall 10% to 20% if the bid is not approved, but said, "Any investor who has endured the pain of owning cable over the summer is going to be loath to sign up for another dose by voting this thing down." Shares of Cablevision lost 0.6% to $33.70 on Tuesday.

Sources: Press release, Wall Street Journal, New York Times
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Earnings call transcript: Cablevision Q2 2007

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