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In an Effort to Take the Firm Private, Cox Enterprises

question 19

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In an effort to take the firm private, Cox Enterprises announced on August 3, 2004 a proposal to buy the remaining 38% of Cox Communications' shares that they did not currently own for $32 per share. Cox Enterprises stated that the increasingly competitive cable industry environment makes investment in the cable industry best done through a private company structure. Why would the firm believe that increasing future levels of investment would be best done as a private company?

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Definitions:

Digestion

The biological process by which the body breaks down food into absorbable forms for energy, growth, and cell repair.

Neurons

Specialized neurons in the nervous system that communicate information via electrical and chemical signals.

Networks

Systems of interconnected people, computers, or other entities through which information, resources, and communications are exchanged.

Behaviour

Actions or reactions of an individual, in response to external or internal stimuli.

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