James Dolan to Cablevision: The Offer StandsCablevision Systems Shareholders Set to Vote Oct. 24 10/16/2007 04:03:00 PM Eastern
Speaking on behalf of the Dolan Family Group, Dolan said Tuesday that the offer to acquire all outstanding shares of Cablevision will not be modified from the current $36.26-per-share bid.
"On behalf of my parents, brothers and sisters, I want to state emphatically that there will be no modification of the family's accepted offer to acquire Cablevision," Dolan said in a statement. "We are looking forward to next week's vote and hope that the transaction is approved, but I'd underscore that I am completely prepared to continue to lead the company into the future as a public company if the transaction is not approved."
James Dolan and his father, Cablevision chairman Charles Dolan, have orchestrated several attempts to take the company private, with the latest offer launched in May.
The proposed transaction is meeting resistance from some shareholders that view the price as undervaluing the company. Mario Gabelli, chairman and CEO of GAMCO Investors which holds 8.3% of outstanding Cablevision shares, and John Linehan, a fund manager at T. Rowe Price, which holds 4.4% of shares, have both been outspoken critics of the offering.
On Tuesday, ClearBridge Advisors said it would also oppose the plan. ClearBridge, an equity manager owned by Legg Mason, is the largest institutional shareholder of Cablevision stock with approximately 14%.
In a statement, ClearBridge said it does not believe “that the shareholders are being adequately compensated for the expected growth in Cablevision's free cash flow … nor the value of the other assets owned by the company.”
Shareholders will vote on the offer Oct. 24.