DOW JONES NEWSWIRES
Cablevision Systems Corp. (CVC), seeking to quell speculation
about its future, said it is not considering selling its Madison
Square Garden unit or any of its businesses for now.
The statement comes four days after the company said it was
reviewing a possible spinoff of MSG, which besides the iconic arena
also includes the New York Knicks and Rangers.
"The company feels it should make clear that it is not
considering the sale of MSG, any of MSG's businesses or any other
Cablevision business at this time," Cablevision said Monday.
Shares fell 2.9% in early trading to $18.89 as part of a broad
market selloff.
After the Thursday disclosure while disclosing strong
first-quarter results, investors tried to determine whether the
move might set up the sale of the company's core cable business to
a larger operator, a move analysts have seen as the likely endgame
for the company's controlling Dolan family.
The exploration of a spinoff of Madison Square Garden marks the
latest twist in the Dolans' often unpredictable relationship with
shareholders. The family has repeatedly failed to take Cablevision
private - the latest in 2007 - as shareholders voted against what
they said was too low a price. Chief Executive James Dolan
indicated then he saw the shareholder rebuke as a referendum for
Cablevision management to spend its cash as it saw fit, including a
controversial purchase of newspaper Newsday for $650 million last
year.
Cablevision later launched an unexpected charm offensive,
reaching out to investors for the first time in years and promising
to take measures to boost its stock price after an activist hedge
fund started buying up shares. Those efforts were shelved at the
onset of the financial crisis.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com