Insight going private
Copyright 2005TheStreet.comJuly 29, 2005 Friday 9:53 AM Eastern TimeBy TSC StaffFrom Lexis Nexis
A management-led group reached a definitive agreement Friday to take cable operator Insight Communications private for $11.75 a share.
The vehicle buying the New York-based company is called Insight Acquisition, and is led by Insight co-founders Sidney Knafel and Michael Willner, along with the Carlyle Group. Chairman Knafel and CEO Willner own 14 percent of the stock and hold a 62 percent voting stake.
The group made a preliminary bid for Insight in March, then offering $10.70 a share. Insight formed a special committee of independent directors to consider the proposal. On Friday, the company said the board panel had cleared the deal as in the best interest of shareholders. Insight said the new price offers a 21 percent premium to Insight's closing price the day before the March bid.
The news comes just a week after Insight refinanced some debt. The company, the nation's No. 9 cable operator, is facing a landscape in which leading players Comcast and Time Warner are steadily expanding their reach.
Early Friday, Insight was flat at $11.20.