Mediacom founder, CEO makes buyout offer

The founder, chairman and chief executive officer of Mediacom Communications Corp. is offering to buy the remaining stock he does not already own and take Iowa's largest cable TV provider private.

Rocco Commisso has submitted a tender offer to acquire all of the company's outstanding Class A and B shares for $6 per share in cash. That would represent a 13 percent premium to Friday's closing price on the Nasdaq market.

Commisso's bid values the cable TV, telephone and Internet provider

at $590 million. Taking the company private would eliminate the expense of regulatory filings with the federal Securities & Exchange Commission.

Middletown, N.Y.-based Mediacom serves many communities in Iowa, including Cedar Rapids, Iowa City and Des Moines. Should the company become privately owned, it would notify subscribers and franchise authorities - usually cities - of its intent to raise rates.

Commisso owns a 40 percent equity stake in Mediacom and controls 87 percent of the voting power, according to his proposal to the company's board of directors.

Shares of Mediacom rose 16 cents or 2.55 percent Wednesday to close at $6.43 per share.

In his proposal to Mediacom's board, Commisso said he would continue as chairman and CEO after the company goes private. He also plans to retain the existing senior management team.

Commisso also told the board that he is not interested in selling his stake in the company or considering any other transactions other than his own.

Mediacom's board of directors appointed a special committee to review Commisso's proposal.