Increased Corporate Governance Concerns At Cablevision: Waiting for Voom Announcement

[joep]

http://www.forbes.com/home/markets/2005/03/31/0331automarketscan06.html

Increased Corporate Governance Concerns At Cablevision

03.31.05, 10:58 AM ET


Standard & Poor's Equity Research reiterated a "hold" rating on Cablevision Systems (nyse: CVC - news - people ), noting that today is the deadline for Chairman Charles F. Dolan to brief the board on funding for the VOOM satellite service, or face shutdown of the satellite assets. S&P Equity Research noted that Cablevision shares have dropped 3% this week on news of Dolan's petition for the Federal Communications Commission to withhold approval on the pending sale of the Rainbow 1 satellite to EchoStar Communications (nasdaq: DISH - news - people ), "which reportedly alluded to $400 million in funding plans that we are unable to confirm." The research firm said that after the ouster of three directors who opposed VOOM, "recent developments have heightened our corporate governance concerns, as we await announcement on VOOM from the newly constituted board."

 

[niceprophet]

Umm. No. The shares dropped on the news of the Adelphia bid.

 

[T2k]

Exactly. Another misinformed article... Forbes?

 

[dragon002]

this is totally unbelievable, STANDARD & POORS and FORBES are a couple of no nothing little moron infested rats nests.

and the posters on here know more than they do!!!

i have heard it all now

 

[who_the]

Umm. No. The shares dropped on the news of the Adelphia bid.

That could very well be true, but apparently S&P Equity Research, a pretty solid source, thinks the Dolan petition hurt the stock price.

I'm guessing it was both, but I think S&P is right on in saying that the uncertainty and unpredictability among CVC leadership is the biggest worry.