http://news.yahoo.com/s/nm/20061009/bs_nm/media_cablevision_dc_2
Dolan family offers to buy 100 pct of Cablevision
NEW YORK (Reuters) - The Dolan family, which controls Cablevision Systems Corp. (NYSE:CVC - news), on Monday said it offered to buy the remaining shares it does not already own in a deal that values the company's equity at $7.9 billion.
The deal implies an enterprise value of $19.2 billion, which includes debt for Cablevision. Shareholders would receive $27 per share in cash, under the terms of the deal proposed in a letter on Sunday to the board of directors, according to a statement issued on behalf of the family.
The offer price represents a 17-percent premium to the average closing price over the past two weeks and is 14.9 percent higher than a 2005 proposal to go private, according to the statement.
The Dolans said they expect the cable company's senior management team to stay in place with Charles Dolan as chairman and James Dolan as president and chief executive.
The family said it would finance the deal in part by investing all its shares in the company, which would have a value of about $1.7 billion based on the offer price.
The total funds needed for the deal are expected to be about $10.9 billion, including refinancing of existing credit facilities, according to the Dolan family, which said it received a commitment letter from Merrill Lynch & Co and Bear Stearns & Co. for debt financing necessary for the deal.
The family said it emphasized in its letter to the board that it has no interest in selling its stake in Cablevision. It said it anticipates that the board will form a special committee of directors to respond to the proposal.
Dolan family offers to buy 100 pct of Cablevision
NEW YORK (Reuters) - The Dolan family, which controls Cablevision Systems Corp. (NYSE:CVC - news), on Monday said it offered to buy the remaining shares it does not already own in a deal that values the company's equity at $7.9 billion.
The deal implies an enterprise value of $19.2 billion, which includes debt for Cablevision. Shareholders would receive $27 per share in cash, under the terms of the deal proposed in a letter on Sunday to the board of directors, according to a statement issued on behalf of the family.
The offer price represents a 17-percent premium to the average closing price over the past two weeks and is 14.9 percent higher than a 2005 proposal to go private, according to the statement.
The Dolans said they expect the cable company's senior management team to stay in place with Charles Dolan as chairman and James Dolan as president and chief executive.
The family said it would finance the deal in part by investing all its shares in the company, which would have a value of about $1.7 billion based on the offer price.
The total funds needed for the deal are expected to be about $10.9 billion, including refinancing of existing credit facilities, according to the Dolan family, which said it received a commitment letter from Merrill Lynch & Co and Bear Stearns & Co. for debt financing necessary for the deal.
The family said it emphasized in its letter to the board that it has no interest in selling its stake in Cablevision. It said it anticipates that the board will form a special committee of directors to respond to the proposal.
