NEW YORK, Sept. 18, 2015 (GLOBE NEWSWIRE) -- Melwani & Chan, LLP, a boutique law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Cablevision Systems Corp. (“Cablevision” or the “Company”) relating to the sale of the Company to Altice S.A. ("Altice"). On September 17, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Altice will acquire Cablevision in a deal worth approximately $18 billion including Cablevision’s debt. As a result of the acquisition, Cablevision shareholders are only anticipated to receive $39.40 per share in cash in exchange for each share of Cablevision stock they own. Cablevision stockholders will not get a chance to vote for or against the transaction.
Our investigation so far has revealed that the consideration Cablevision shareholders are expected to receive is inadequate. Cablevision recently issued stellar earnings results last month -- $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimate of $0.25. Cablevision earned $1.65 billion during the quarter, an increase of 1.2% on a year-to-year basis.
Melwani & Chan is also investigating whether Cablevision’s directors are breaching their fiduciary duties to maximize shareholder value by failing to adequately shop the company. Conflicts of interests also tainted the sales process. This deal seems to be only serving the interests of insiders of Cablevision, and Altice, a European company with an agenda of taking over American telecom corporations. The Dolan family own approximately 73% of the voting power and 8 out of 11 directors are Dolans.
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Source:Melwani & Chan LLP