Investors frustrated the founding Dolan family's latest attempt to take Cablevision private, soundly rejecting its $10.6 billion offer for the New York-area cable TV and entertainment company.

Cablevision did not say how close the proposal came to passing, stating only that "based on preliminary voting results, it did not receive a sufficient number of votes."

In a statement, the Dolans tried to put a good face on the vote: "There is really nothing negative about today's outcome. In fact, in many ways, it is a very positive event. We see today's outcome as a vote of confidence in the prospects of Cablevision."

In 2005, the Dolans had suggested splitting the company's cable operations from its other businesses—it also owns Radio City Music Hall and Madison Square Garden, as well as the New York Knicks pro basketball team, the New York Liberty women's basketball team, and the New York Rangers hockey team—and buying the cable business from shareholders. Investors rejected the idea.

The family came back in 2006 and offered $27 a share for the whole company. Shareholders balked. The Dolans raised the offer to $30 a share, again without success.

Founder Charles Dolan and his elder son, James, made a new offer, of $36.26 a share, earlier this year, a bid worth $10.6 billion in cash, or about $23 billion including the debt they would assume. That was the offer shareholders turned down today.

Some investors said they believe the company, which has 3 million subscribers as well as the entertainment properties, is worth closer to $50 a share. The stock opened at $32 today and fell as low as $30.06 during the day.