Disney Rejects Comcast's $49 Billion Merger Proposal

Authored by Mark Hefflinger on February 17, 2004 - 8:55am.

Burbank, Calif. -- The Walt Disney Company announced on Monday that its board of directors has unanimously rejected a $49 billion unsolicited merger proposal from Comcast, the nation's largest cable TV provider. In a statement announcing its rejection of Comcast's offer, Disney's board said that it "has confidence in the business, financial and creative direction of Disney under the leadership of Michael Eisner." The board also noted that Comcast's valuation of Disney was 15% lower than its current share price. "We are committed to creating shareholder value now and in the future and will carefully consider any legitimate proposal that would accomplish that objective," the Disney board said in its statement. "The interests of Disney shareholders, which represent the fundamental priority of the board, would not be served by accepting any acquisition proposal that does not reflect fully Disney's intrinsic value and earnings prospects."
http://biz.yahoo.com/bw/040216/165474_1.html
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