On June 1, 2010 Mediacom Communications received a buyout offer from its founder and CEO, Rocco Commisso. Mr. Commisso already owns 40% of the outstanding shares of the company and controls 87% of the voting rights. As one cable analyst noted, “public shareholders will not let Rocco steal the company at $6.00.”
Under the terms of the buy out offer:
- Mediacom shareholders will receive $6 in cash for each Mediacom share;
- Mediacom has agreed to negotiate the transaction with the CEO on an accelerated basis.
- Mr. Commisso and Mediacom’s management will keep their positions and operate the company for their own benefit.
Shareholders are investigating potential breaches of fiduciary duty and other violations concerning the transaction’s approval by Mediacom’s board of directors, and in particular whether Mediacom’s board undertook a fair and complete process to attain the highest value for Mediacom’s public shareholders.
If you are a Mediacom shareholder and wish to speak with us about your legal rights or are interested in participating in a class action concerning the Mediacom buyout, please fill out the following form or call us at 1-877-573-0007.