Disney Board Rejects Comcast Bid

[Pat X]

Hey,

Here's an interesting article from the Orlando Sentinel. A link to the full article follows this quote

"Some Wall Street analysts and money managers have argued that Disney is worth at least $30 a share. Many analysts think Comcast is prepared to raise its offer by 10 percent to 15 percent.

But it's uncertain whether it will be able to do so without diluting its stock and further alienating its own investors who so far have thrown cold water on the prospect of a Comcast-Disney pairing. That was the widely held view among leading analysts and investors who attended the three-day investor conference last week.

Analysts say it's difficult to predict whether anyone else might emerge as a rival bidder. While there are no obvious suitors beyond Comcast, they said that anything can happen with a company as well-known as Disney at stake."



http://www.orlandosentinel.com/business/custom/tourism/orl-asecmdisney17021704feb17,1,5956970.story?coll=orl-home-promo

 

[GaryT977]

Just because I enjoy being contrarian, this is from the Wall Street Journal:

"And just because the board has said no does not mean that Comcast will simply go away. According to several people close to Comcast, the cable operator has explored filing a shareholder consent action with the Securities and Exchange Commission. Such a move would enable Comcast to seek the consent of shareholders to replace some or all of Disney's directors and with their own more friendly candidates.

Comcast is a Disney shareholder and if it proceeds with such an action it will have 60 days to solicit investors - once it announces a record date - in the hope of winning a majority vote. While an aggressive tactic, it has been used before in other testy situations. "

I have a feeling this could drag out for a while.