Hearst-Argyle Committee to Consider Offer
Board members Pulver and Williams to study potential Hearst Corp. bid
By Michael Malone -- Broadcasting & Cable, 3/26/2009 5:49:08 PM
Responding to the news that Hearst Corp. plans to make a cash tender offer for all remaining shares in Hearst-Argyle Television, Hearst-Argyle said it would assemble "a special committee of independent members of the Board of Directors" to consider the offer. The committee will include two Series A directors of Hearst-Argyle Television: Cornerstone Capital President David Pulver and Grey Seal Capital President Caroline L. Williams.
Hearst announced it intends to "make a tender offer for all of the outstanding shares of Series A Common Stock of Hearst-Argyle Television, Inc. not already owned by Hearst for $4.00 per share in cash." The offer price represents a premium of approximately 91% over their price at the time of the announcement. It values the Hearst-Argyle stations at around $375 million--less than a fifth of the valuation from when Hearst made an offer of $23.50 a share in August 2007.
If Hearst does commence an offer, Hearst-Argyle will advise stockholders of its position within 10 business days. Hearst has said it expects to commence its offer in mid April.
In light of the announcement, Hearst-Argyle's Board of Directors has decided to postpone its annual meeting of stockholders, which was to be held May 6.
Hearst-Argyle owns 26 stations. Its stock finished the day at $4.18-about double what it was prior to Hearst Corp.'s announcement.
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