Mediacom Communications Corp. (MCCC) CEO Offers to Buy the Company

Mediacom Communications Corp. (MCCC) CEO Offers to Buy the Company

Shares of Mediacom Communications Corporation (NASDAQ: MCCC) jumped more than 17% in Tuesday�s trading. The stock reached a high of $6.47 in trading. It closed 17.64% higher at $6.27, with volume up from daily average of 549,000 to 2.79 million. The stock was active again in after-hours trading on Tuesday as it climbed another 1.12% to $6.34.

Middletown, New York-based Mediacom is a cable company focused on providing services in smaller American cities such as Des Moines in Iowa and Springfield in Missouri.

The stock spiked in Tuesday�s trading after Mediacom announced that its founder and CEO Rocco Commisso offered to buy all the company�s outstanding shares that are not owned by him for $6 per share. In a letter to Mediacom�s board of directors, Commisso, who is also the company�s chairman, said that his current stake stands at 40%. Commissso has offered $245 million to buy out the company and take it private.

The company has not taken any decision on the proposal as yet. However, it said that Commisso�s offer will not have an effect on the company�s day-to-day operations. Commisso plans to finance the deal through borrowing under Mediacom�s existing credit agreements. Commisso said in his letter to the board of directors that the offer is in the best interest of the company and all its shareholders. He also said that he is ready to move very quickly to negotiate the deal.

The Mediacom stock has a 52-week range of $3.85-$7.30. The stock has seen support at around $5.55 and resistance at around $6.72. Currently, the stock is trading above its 50-day and 200-day moving averages. The huge interest in Tuesday�s trading shows that investors are expecting Commisso to raise his offer further from $6 per share.

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