Cablevision Shareholders Reject Dolan Bid
The Dolans had been offering $10.6 billion, or $36.26 per share. The vote included no mention of what to do about Isiah Thomas.
Cablevision's stock was down 99 cents (3.1%) at $30.87 this afternoon.
Many of the company's largest institutional shareholders have protested the deal since its announcement saying that it largely undervalued the company. Mario Gabelli, whose investment firm Gamco Investors holds an 8.3 percent stake in Cablevision, stated that he felt the stock could climb up to $70 within five years. (See Cablevision Bid Faces Shareholder Opposition .)
Cablevision CEO James Dolan said in a statement that he was disappointed that the transaction wasn't approved but saw the rejection as a "vote of confidence in the prospects of Cablevision."
Dolan had maintained in the past that he was "completely prepared to continue to lead the company into the future as a public company if the transaction is not approved." (See Dolan Family Won't Budge .)
Even though the Dolans own 65 percent of the company's voting rights through a special class of shares, the privatization bid carried a condition that the majority of the common outside shareholders approve the deal.
— Raymond McConville, Reporter, Light Reading