Somehow I either got the wrong information yesterday or I simply misunderstood it. It turns out that the Dolans want CVC to pay out $3,000,000,000 in dividends, or about $10 per share. Of course the company would have to borrow the money to pay the dividend. Now why would the stock go down $3+ if the shareholders were about to receive $10 per share in dividends?
Mr. Dolan said that the credit market right now is very "robust" and that it values CVC much more favorably than the equity market. True to his history, he would continue to borrow to pay a "dividend" that the company has not earned. Rising interest rates and tighter liquidity, dead ahead, spell doom for these guys and nobody will be happier to see it than me.