CoBank sues to block Cable One’s $480 million Mega Broadband acquisition
CoBank, Cable One’s largest secured creditor, filed a federal suit in New York seeking an emergency restraining order to stop the company from transferring about $480 million to buy a 55 % stake in Mega Broadband. The filing arrived on the deal’s deadline, causing Cable One shares to tumble more than 34 % to around $10.10 and erasing earlier gains. The lawsuit raises doubts about Cable One’s ability to finance the transaction and its overall financial stability.
Why it matters
The restraining order halts the cash transfer needed for the acquisition, meaning the deal may not close as planned and Cable One will need to find alternative financing. Investors face heightened credit risk and potential further share price declines until the dispute is resolved.
Key facts
- 1CoBank seeks an emergency restraining order to prevent Cable One from moving roughly $480 million for the Mega Broadband purchase. investing.com
- 2CoBank holds about $1.1 billion of secured credit from Cable One. investing.com
- 3The lawsuit was filed on the Friday deadline for completing the transaction. investing.com
- 4Cable One shares fell 34.3 % to $10.10 after the filing. investing.com
- 5Cable One’s market capitalization is $57 million. gurufocus.com
- 6The company’s price‑to‑sales ratio is 0.05, far below its historical median of 4.31. gurufocus.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.