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Mediacom Board OKs Privacy Offer

11/29/2010 12:01 AM Eastern

MIDDLETOWN, N.Y. — After two previous
attempts to take the small-market
MSO private failed, a special committee
of Mediacom Communications’
board of directors said Nov. 15 it has
accepted chairman and CEO Rocco
Commisso’s $8.75-per-share cash
offer for the company.

Commisso, who founded the 1.2
million-subscriber MSO in 1995, had
made an offer to purchase the remaining
interest in Mediacom he did not
own for $6 per share in June, only to
have that bid rejected by a special
committee of independent directors
as too low. A second offer was also
rebuffed by the committee.

Upon consummation of the merger,
all shares that are not owned by Commisso
will convert into $8.75 per
share in cash, a 46% premium to his
original June offer and 28% above its
Nov. 12 close of $6.86 per share.

The new offer is still short of what
some analysts believe the company
is worth — some have pegged it as
above $9 per share — but should
pass muster with investors.

Shares in Mediacom, the No. 8
MSO, soared 22% ($1.51 per share)
to $8.37 each on Nov. 15, but have
since leveled off, closing at $8.46 per
share on Nov. 23.

The transaction is expected to be
completed in the first half of 2011.

 

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