Dolans Rebuffed in Bid to Take Cablevision Private

Oct 25, 06:27 AM

Current Headlines: By Daniel Wagner and James Bernstein, Newsday, Melville, N.Y.

Oct. 25--Cablevision Systems Corp. shareholders voted yesterday to reject the Dolan family's $22 billion bid to take the company private.

At the end of a 20-minute meeting at Cablevision's Bethpage headquarters, chief executive James Dolan expressed disappointment about the vote but said he saw it as "a very positive event."

"We see today's outcome as a vote of confidence in the prospects of Cablevision, its management team ... and the industry's future," he told about 200 shareholders.

James Dolan's father, Charles Dolan, founded the firm, and it was an entity created by the Dolan family that made the $36.26-per-share offer. The terms of the offer did not permit the family to vote.

This was the latest in a two-year effort by the family to remove the company from public trading. The Dolans had earlier offered $21, $27 and $30 per share.

The outcome did not surprise industry analysts, or Cablevision itself, which had pre-printed a press release announcing the preliminary voting results. Analysts had predicted the proposal would be voted down after several major shareholders said they would oppose the measure because they felt it undervalued the company.

During the meeting, one shareholder objected to Dolan's refusal to answer shareholder questions, suggesting the family wants to take the company private to avoid answering to shareholders.

"I think it's outrageous," said the man, who didn't identify himself, adding that he had not seen anything like it in over 50 years of involvement with American corporations. "People want to have a chance to ask valid, intelligent questions."

As James Dolan looked on and smiled faintly, secretary of the company Vicki Salhus told the group that the chairman has the right to set the rules for any such meeting.

The firm is the largest provider of cable television in the metropolitan area, and also owns media and entertainment properties, including Madison Square Garden; the New York Knicks, Rangers and Liberty; and Radio City Music Hall.

Cablevision stock closed yesterday at $30.82, down $1.04.

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