Lots of analysts getting writers’ cramp over the bid by the Dolan family, Cablevision’s majority shareholders, to take the cable operations private and spin off the entertainment assests into a new company. A sampling:
Richard Greenfield, Fulcrum Global Partners: “It almost feels like Chuck Dolan is simply attempting to take CVC private so he can capture 100% of the sale premium to Time Warner or Comcast in 12 months, rather than the upside from his current 24% ownership. We believe it is hard to imagine the independent directors not pushing back on $33.50, given the underlying asset value of CVC.” He suggests Comcast and TimeWarner as possible bidders.
Alan Bezoza, SVP-broadband cable research, FBR: “While we applaud management’s efforts to unlock value, we also believe this is a move to cheaply take control of the cable assets. With most of the premium is coming from a rich valuation on Rainbow, we believe investors willing to wait for the spin-off may be left holding the bag.”
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