Monday, March 07, 2005

Carlyle Group Gets Another Media Outlet?

March 7, 2005
Insight Buyout Offer Is Expected Today
By ANDREW ROSS SORKIN

he Carlyle Group and the co-founders of Insight Communications, the nation's ninth-largest cable television operator, are planning to make a $650 million offer today to buy out the public shareholders of Insight, executives close to the company said yesterday.

The move follows a similar plan last year by the controlling shareholders of Cox Communications to take that company private. Insight has a joint venture with Comcast and serves 1.3 million customers in Illinois, Indiana, Ohio and Kentucky.

Carlyle and Insight's co-founders, Sidney R. Knafel and Michael S. Willner, are proposing to buy the company's outstanding shares for $10.70 a share in cash, an 11 percent premium over the closing price of Insight's stock on the Nasdaq Friday and a 17 percent premium over the six-month average closing price.

An executive close to the company said the offer price was worth more than the shares have traded for in the last 12 months. The proposal values the total equity of Insight at about $650 million. The company's existing debt will remain outstanding.

Insight's board is expected to form a special committee of independent directors to consider the proposal, which requires shareholder approval. Mr. Knafel and Mr. Willner own shares of Insight representing approximately 14 percent of the equity and 62 percent of the vote.

Morgan Stanley and Stephens are advising the group and Dow, Lohnes & Albertson and Debevoise & Plimpton L.L.P. are providing legal counsel.



Copyright 2005 The New York Times Company |

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