NEW YORK (Reuters) - Cablevision Systems plans to buy Bresnan Communications for $1.37 billion, expanding its cable systems beyond the New York city area to the western United States.
The deal gives Cablevision, whose shares were down 3 percent, more than 300,000 subscribers in Colorado, Montana, Wyoming and Utah. Currently, it sells video, Internet and phone services in New York, New Jersey and Connecticut.
Cablevision's purchase of Bresnan from majority owner Providence Equity Partners refocuses its business on its bedrock cable systems.
In 2008 Cablevision acquired the Melville, N.Y.-based newspaper Newsday from the Tribune Co for $650 million only to write down the deal by more than half of the value a year later.
The Bresnan deal, which was reported on Sunday, is expected to close in late 2010 or early 2011. Cablevision Chief Operating Officer Tom Rutledge will oversee the new business.
Cablevision expects to finance the deal using non-recourse debt of about $1 billion and an equity investment by Cablevision of less than $400 million.
Citigroup
Providence Equity Partners, which bought Bresnan in 2003 for $525 million, put the company up for sale in March. Minority stakeholders in Bresnan include Comcast Corp
Shares of Cablevision are up 10 cents to $23.50 in early trade on the New York Stock Exchange.
(Reporting by Jennifer Saba; Editing by Derek Caney)
