(Associated Press via NewsEdge) The controlling shareholders of Cablevision Systems, the Dolan family, raised their bid to take the company private for $8.9 billion and said it was their final offer.
The offer of $30 per share is an increase of 11% over their previous proposal of $27 per share for the New York-area cable operator, which also owns Madison Square Garden, several cable networks and other properties.
The Dolans had been widely expected to raise their bid, but some analysts said it wasn't clear if the new offer would be accepted by a special committee of independent directors on Cablevision's board.
The Dolan family, led by Charles Dolan, the chairman, and his son James, the CEO, own about 20% of Cablevision's stock but control 70% of the shareholder vote through a special class of shares.
'Do Not Let Chuck and Jim Dolan Steal CVC,' Pali Capital analyst Richard Greenfield said in a note to investors Friday, referring to Cablevision's ticker symbol.
Greenfield said it was unlikely that the company's board would accept the offer, given a runup in the stocks of other cable companies since last October, when the Dolans announced their offer, and also since Cablevision deserved a premium to its competitors given its stronger earnings growth and desirable location of its 3 million subscribers, who are largely located in the New York area.
Sanford C. Bernstein analyst Craig Moffett said in a note that Dolans' offer was no better than current market valuations of cable companies, and said it was unclear whether the bid would be 'deemed sufficient.'
Other analysts, however, said the new offer stood a good chance of getting approved.
The Dolans tried to take Cablevision private before, but could not reach an agreement with the board's special committee of independent directors.
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