Cablevision Deal Rejection: Investors In Control
It looks the takeover trend is winding down somewhat--at least as far as the Dolan family is concerned. Their $10.6 billion bid to take Cablevision private has been rejected by shareholders.
This the biggest rejection of a buyout ever. Institutional Shareholder Systems rejected the deal, as did Mario Gabelli's fund group, and so too the largest shareholder: ClearBridge Advisors. The $32.26 per share offer simply wasn't sweet enough. And there was a lot of backlash (including from Gabelli) about minority shareholders abusing their position of power.
The Dolan family controls about 65 percent of the company's vote through a special class of shares with powerful voting rights--and Cablevision is one of the most successful TV providers in the U.S.
So what's the upshot? In this day of activist investors, no one's going to get ripped off. And there's a lot of focus on how spinning of divisions or selling certain parts to other public companies has to make more sense to shareholders.
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