Cablevision Expects MSG Renovation Cost Estimate Before Spinoff
By Nat Worden, Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Hank Ratner, vice chairman of Cablevision Systems Corp.
(CVC), said Tuesday that the company expects to have an updated cost estimate
for the planned renovation of Madison Square Garden before it spins off that
business and other related assets into a separate, publicly-traded company
before year-end.
On a conference call with analysts following the company's third-quarter
earnings release, Ratner said Cablevision is in talks with the construction
manager overseeing the renovation of the iconic arena about coming up with a new
cost estimate.
Earlier this year, the company backed away from its original cost estimate for
the project, saying it will be "materially higher" than the $500 million price
tag the company was forecasting last year.
Cost concerns come as Cablevision is preparing to sell investors on its MSG
division as a separate company. Gregg Siebert, executive vice president of
Cablevision, noted that the company has received an IRS ruling on the planned
transaction, and it's not waiting for other regulatory approvals.
Siebert said he expects to close the transaction on or around Dec. 31, and he
said the company is planning a 'road show' for December, where it will present
more details about MSG and the spin-off transaction.
-By Nat Worden, Dow Jones Newswires; 212-416-2472; nat.worden@dowjones.com
(END) Dow Jones Newswires
11-03-091051ET
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