Hearst Makes Bid To Take Station Group Private
Second Time Could Be Charm
Mike Farrell -- Multichannel News, 3/26/2009 3:22:55 PM
Nearly two years after its $600 million attempt to take Hearst-Argyle TV private failed after investors complained the offer was too low, Hearst Corp. has decided to go to the trough again, this time offering less than one-fifth of the old price.
In a statement March 25, Hearst said it has offered $4 per share for the remaining shares of Hearst-Argyle, representing a 91% premium to the closing price of the shares on March 24 ($2.09 each). Hearst said it plans to commence a tender offer for the shares in mid-April.
Back in August 2007, Hearst, offered $23.50 per share for the remaining shares of Hearst-Argyle it didn't own.
Hearst owns about 67% of Hearst-Argyle's common stock and 100% of its super-voting Class B shares, giving it about 82% of both the station group's outstanding equity and general voting power.
Hearst-Argyle stock has since shot up after the offer was announced - it was priced at $4.10 per share in afternoon trading on March 26.
Earlier this week, Cox Enterprises proposed acquiring the remaining interest it didn't own in Cox Radio for about $69 million.
Hearst-Argyle owns about 29 television stations across the country and has been a vocal proponent of receiving cash for retransmission consent from cable and satellite TV operators.
Hearst launched its first bid to take Hearst-Argyle private in August 2007, offering $23.50 per share for the 27% of the station group's stock it didn't already own. That offer was rejected in September. In October, Hearst let the offer expire.
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