Cablevision Systems Corporation
Robbins Arroyo LLP: Acquisition of Cablevision Systems Corporation (CVC) by Altice NV (ATC) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Cablevision Systems Corporation (NYSE: CVC) by Altice NV (EN Amsterdam: ATC). On September 17, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Altice will acquire Cablevision. Under the terms of the agreement, Cablevision shareholders will receive $34.90 in cash for each share of Cablevision common stock.
Is the Proposed Acquisition Best for Cablevision and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Cablevision is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $34.90 merger consideration represents a premium of only 22.3% based on Cablevision’s closing price on September 16, 2015. This premium is significantly below the average one-day premium of nearly 28.2% for comparable transactions within the past three years.
On August 7, 2015, Cablevision reported strong earnings results for its second quarter 2015. Net revenues for the quarter were $1.65 billion, an increase of 1.6% compared to the second quarter of 2014. Additionally, Cablevision has beat consensus analyst estimates for sales in every quarter for the past two years. In commenting on these results, Cablevision Chief Executive Officer James L. Dolan remarked, “Cablevision continued to perform well in the second quarter, achieving growth in net revenue and revenue per customer. Over the past three years, we have transformed our company through strategic investments that have made our operations more efficient, increased the reliability and performance of our network, and enhanced our products and the customer experience. This has contributed to our largest quarterly gains in both customer relationships and high-speed data customers in more than two years. We will continue to focus on providing superior service and innovative products that will resonate with consumers.”
In light of these facts, Robbins Arroyo LLP is examining Cablevision’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Cablevision shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Cablevision shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.