Mediacom founder withdraws bid for company

Cable operator had rejected increase to his offer

NEW YORK -- Rocco Commisso, the founder, chairman and CEO of small cable operator Mediacom Communications, has withdrawn his offer to purchase all of the shares of Mediacom that he does not currently own.

Commisso had first proposed to take Mediacom private on May 31 for $6 per share, or $250 million. He already controls the firm via a 40% equity stake and a 87% voting stake.

In a statement, he said he reached his decision to withdraw the bid after a special committee of Mediacom's board rejected "a meaningful increase to his initial offer price." He didn't detail the amount of the increased offer.

"I am very disappointed with the highly unusual process and ground rules established by the Special Committee and its financial and legal advisors to evaluate my proposal," Commisso said in a statement.

He argued that the committee deprived Mediacom's other shareholders of the opportunity to decide for themselves.