A large
Cablevision Systems Corporation
(NYSE:CVC) shareholder may exercise his rights to have the value of his
shares appraised in connection with the cable company's proposed buyout
deal, according to a
Schedule 13D/A filing with the SEC.
Mario
Gabelli, who owns an 8.3% stake in the company, said he is carefully
considering the buyout offer that he believes is too low. Many
shareholders and analysts are carefully watching his moves as his stake
may be a key voting block in during the company's upcoming proxy.
"Part
of us says take the money and run because of what the world's going
through with regard to the [lending market] crisis," said Gabelli in an
interview with The New Post. "But it could be worth $65 to $70 a share
in five years."
The Dolan family, which controls Cablevision,
has proposed to take the company private in a deal worth $10.6 billion
- or $36.26 per share. The company's shareholders will vote on the deal
on October 24th, while the transaction has already been approved by
Cablevision's board.
In the end, a buyout is probably the best
option for shareholder given the troubles in the credit market and
risks over the next five years. However, whether the transaction gets
consummated remains to be seen. We could possibly see a higher buyout
price if the appraisal puts a significantly increased valuation on the
company. Combined, these factors make this stock one
worth watching!
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