Gabelli to vote against Cablevision buyout

By Megan Davies

NEW YORK (Reuters) - Fund manager Mario Gabelli is to vote his fund's stake in Cablevision Systems Corp. (CVC.N: Quote, Profile, Research, Stock Buzz) against a $10.6 billion buyout of the New York-area cable operator and entertainment group, according to a regulatory filing.

Cablevision agreed earlier this year to be taken private in a $36.26-a-share bid from the Dolan family, which owns 20 percent of the company's common stock.

Shareholders are due to vote on the proposal on October 24.

Gabelli said at the time the deal was struck that the offer undervalues Cablevision's assets by $15 a share, or more than $4 billion.

Cablevision owns Madison Square Garden and its pro sports teams, the New York Knicks (basketball) and Rangers (ice hockey). The company also operates New York's famed Radio City Music Hall and the Beacon Theater, and owns and operates the Clearview Cinemas movie theater chain.

In the filing by Gabelli's firm Gamco Investors Inc. (GBL.N: Quote, Profile, Research, Stock Buzz) dated Friday, the fund said it planned on "voting against the issuer's proposed going private transaction at the issuer's upcoming special meeting of shareholders". The "issuer" is explained in the filing as referring to Cablevision.

"We believe our clients are best served by staying the course in Cablevision," Gabelli wrote in a letter to Cablevision chairman Charles Dolan dated October 8. The letter was posted on Gamco Investors' Web site under a section entitled The Gabelli Blog.

Gamco, Gabelli and related funds have an 8.3 percent stake in Cablevision according to Friday's filing.