Tuesday, May 1, 2007

Dolan Family to Take Cablevision Private

Cablevision Systems (NYSE: CVC), which serves 3.1 million households in the New York metropolitan area, will become a privately-held company through a deal in which members of the Dolan Family Group will acquire all outstanding shares of Cablevision that they don't already own for $36.26 per share in cash. The transaction implies a total enterprise value of approximately $22 billion.

Cablevision's Board of Directors, including independent directors, have voted to approve the transaction.

The price of $36.26 per share represents a 34% premium to the Dolan Family Group's $27.00 per share offer on October 8, 2006, a 21% premium to its $30.00 per share offer on January 12, 2007, and more than a 50% premium to Cablevision's closing price of $23.93 on the last trading day prior to the October 8 offer.

In the transaction, the Dolan Family Group will contribute approximately $2.1 billion in equity to the transaction through reinvestment of its Cablevision shares in the new privately held company. Merrill Lynch & Co., Bear, Stearns & Co. Inc., and Bank of America have committed to provide approximately $15.5 billion in debt financing to fund the merger consideration and refinance certain bank indebtedness of Cablevision. The company's existing notes and debentures will remain outstanding.

Charles F. Dolan and James L. Dolan, speaking on behalf of the Dolan Family Group, said, "The Dolan family founded Cablevision nearly 35 years ago, and we are very proud of the company's track record of delivering quality service and innovative products to our customers. We believe the best way to continue this tradition in today's increasingly competitive environment is as a privately held company. This new structure and an entrepreneurial perspective will enable us to keep growing the business with our talented management team and dedicated employees."http://www.cablevision.com