A special committee of the board of directors of Hearst-Argyle Television, owner of 26 television stations and the operator of three more, voted unanimously Thursday to recommend rejection of a buyout offer by its parent, Hearst Corp.
The special committee said the offer, a premium of 15 percent above the stock price at the time of the offer, was too low and failed to take into account, among other things, the synergies that would result from a merger.
The recommendation does completely stop the deal, in which Hearst Corp. offered Aug, 24 to buy H-A’s stock at $23.50 per share. But if Hearst Corp. is unable to acquire 90 percent ownership of H-A it seeks in order to merge the companies, it may look at other ways to merge with H-A, according to an SEC filing.
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