Dolans renew Cablevision bid; shares soar
Family makes $7.9B cash offer, a nearly 13 percent premium to Friday's closing price.
NEW YORK (CNNMoney.com) -- The Dolan family, which controls the New York-based cable provider Cablevision, renewed an offer to take the company private for an estimated $7.9 billion in cash.
Cablevision shares soared in pre-market trade on the news, climbing over 21 percent.
The offer, which was submitted to Cablevision board members in a letter Sunday from company chairman Charles Dolan and CEO James Dolan, would give shareholders $27 per share in cash, nearly a 13 percent premium to Friday's closing price.
"We believe this proposal reflects the fair value of the public stockholders' interest and an attractive opportunity for them," Charles and James Dolan wrote in the letter to the Cablevision board on behalf of the Dolan Family Group.
"As a private company, Cablevision will gain the greater flexibility needed to undertake strategic initiatives and develop the next generation of products and services in a rapidly changing consumer marketplace."
The deal would have an enterprise value of $19.2 billion, which includes debt.
Calls to Cablevision by CNNMoney.com were not immediately returned.
The new offer by the Dolans, who own 74 percent of the voting rights of the company, marks the second time the family has attempted to take Cablevision private. A similar offer was made in June 2005.
In its previous offer, the Dolans planned to spin off its Rainbow division as a separate entertainment company, which would include the New York Knicks basketball team, the New York Rangers hockey team, Madison Square Garden, Radio City Music Hall, movie theater chain Clearview Cinemas and the national cable networks AMC and IFC.
The Dolan family also stressed in the letter that it was not interested in selling its stake in the company.
Cablevision (Charts) stock has closed slightly higher Friday in trade on the New York Stock Exchange, while shares of rival DirecTV Inc. (Charts) were slightly lower and Comcast (Charts) shares closed more than 1 percent higher in Nasdaq trade.