The Dolan family's buyout of Cablevision Systems Corp. (NYSE: CVC) has hit yet another snag. Earlier this week, Doug McIntyre wrote about opposition to the deal from legendary manager Mario Gabelli, whose funds own 8% of Cablevision stock. Gabelli is arguing that at $36.26, the value offered in the deal, Cablevision shares are undervalued. He thinks the shares are actually worth $50 or more and is trying to get the Dolans to increase their $10.6 billion dollar deal accordingly.
Now comes the news that the largest institutional shareholder in Cablevision, ClearBridge Advisors, may also oppose the deal. ClearBridge owns 31.4 million shares, or 13.6% of Cablevision. ClearBridge's opposition should be enough to reject the offer.
A report in The New York Times suggests that ClearBridge may be playing a game of chicken with the Dolans. At $36.26 per share, ClearBridge would make money on the deal; it just wants to make even more. But so far, the game isn't working. Last night, James Dolan, Cablevision's CEO, released a statement saying the family would not increase the value of its buyout offer.
The vote on the deal is scheduled for October 24.
Now comes the news that the largest institutional shareholder in Cablevision, ClearBridge Advisors, may also oppose the deal. ClearBridge owns 31.4 million shares, or 13.6% of Cablevision. ClearBridge's opposition should be enough to reject the offer.
A report in The New York Times suggests that ClearBridge may be playing a game of chicken with the Dolans. At $36.26 per share, ClearBridge would make money on the deal; it just wants to make even more. But so far, the game isn't working. Last night, James Dolan, Cablevision's CEO, released a statement saying the family would not increase the value of its buyout offer.
The vote on the deal is scheduled for October 24.
