Warren Buffett on List of Potential Suitors for Cablevision's (CVC) Newsday

March 20, 2013 9:42 AM EDT
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Price: $34.87 --0%

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Yesterday's deal between Charter Communications (Nasdaq: CHTR) and Liberty Media (Nasdaq: LMCA) could put pressure on management at Cablevision Systems Corporation (NYSE: CVC) to create shareholder value, thinks Albert Fried analyst Rich Tullo.

"CVC is currently in the process of divesting its Bressan Cable system (selling to CHTR) and its Clearview Cinemas operating franchise for $1.6 billion to net just under $400 million. We expect data points on the Clearview front in the next 3 months. CVC is reviewing strategic options which could include breaking up the chain, an LBO, or selling the business as a whole," said Tullo.

CVC could also create value by divesting Newsday. Tullo thinks potential suitors for Newsday could include Warren Buffet's Berkshire Hathaway. Other potentials include NY Post, the Daily News, and Private Equity.

In the event of a takeover, Cablevision Systems Corporation could fetch a premium of 40 to 100 percent, thinks the analyst.

Albert Fried & Company has an Overweight rating on Cablevision with a price target of $20.00.

For an analyst ratings summary and ratings history on Cablevision (NYSE: CVC) click here. For more ratings news on Cablevision click here.

Shares of Cablevision closed at $14.57 yesterday.

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