Cablevision Buyout Deal Is Imperiled
By ANDREW ROSS SORKIN

The Dolan family’s $10.6 billion proposed buyout of Cablevision Systems was teetering on the edge of collapse last night after it emerged that its largest shareholder was threatening to vote against the deal.

The shareholder, ClearBridge Advisors, owns 31.4 million shares, or 13.6 percent of Cablevision.

While ClearBridge has not made a final decision and has not publicly indicated its position to Cablevision, it has told other shareholders in recent days that it was leaning against voting in favor of the deal on Oct. 24, when the tally will be taken, according to people briefed on its position.

The buyout requires the approval of a majority of public shareholders in an election in which the Dolans cannot take part.

The Dolans have effective control of the company, based in Bethpage, N.Y., and have made several efforts to take it private. ClearBridge, which will likely be the swing vote, may be trying to play a game of chicken with the Dolans, hoping the family will raise its bid.

Other large shareholders, including T. Rowe Price and Mario Gabelli, have already come out against the deal, as did ISS Governance Services, a firm that advises institutional investors on how to vote their shares. All those shareholders have been seeking a higher bid.

Those hopes were dashed last night when James L. Dolan, Cablevision’s chief executive, said in a statement that he had no intention of raising the family’s bid above the $36.26 a share it has offered.

“On behalf of my parents, brothers and sisters, I want to state emphatically that there will be no modification of the family’s accepted offer to acquire Cablevision,” Mr. Dolan said in his statement. “We are looking forward to next week’s vote and hope that the transaction is approved, but I’d underscore that I am completely prepared to continue to lead the company into the future as a public company if the transaction is not approved.”

Cablevision has about three million cable TV subscribers in the New York area and also owns Radio City Music Hall, the AMC, IFC and WE cable channels, Madison Square Garden, the New York Knicks and the New York Rangers.

Shares of Cablevision closed down 20 cents yesterday, at $33.70.

ClearBridge could also end up voting in favor of the deal — and locking in the investment firm’s gains —now that Mr. Dolan has made it clear that he will not raise his offer.

A spokesman for Cablevision declined to comment. A spokesman for ClearBridge could not be reached.

Cablevision has about three million cable TV subscribers in the New York area and also owns Radio City Music Hall, the AMC, IFC and WE cable channels, Madison Square Garden, the New York Knicks and the New York Rangers.