BETHPAGE, New York: US media dynasty, the Dolans, has again been thwarted in its ambition to return Cablevision Systems into the family's hands as a private entity. Chairman Charles and ceo son James have seen their "best and final" $8.9 billion (€6.87bn; £4.5bn) offer to buy all outstanding shares thrown out by a special committee of the company's board.
The bid was rejected on the grounds that it would not be in the best interest of shareholders and did not reflect the true value of the company, which counts among its three million subscribers the wealthy denizens of New York City and its environs.
The Dolan clan controls 70.4% of the voting power and 20% of Cablevision equity. A previous $7.9bn bid to buy the remainder was also roundly rejected [WARC News: 10-Oct-06].
The family has said it would not agree to sell the company to a third party, ostensibly squashing any hopes that a hostile bidder might emerge. However, industry speculation continues that bigger rival Time Warner Cable is still in the frame for a takeover.
The board committee has also offered "general guidance" to the Dolans on how their offer could be improved. They are sure to be grateful for this helpful advice.
All parties are otherwise remaining zip-lipped.
Data sourced from Wall Street Journal Online; additional content by WARC staff