Programming

Hearst Moves On Merger

Deal should be done in coming days, Hearst-Argyle to drop Argyle 6/03/2009 10:07:53 AM Eastern

Hearst has informed Hearst-Argyle Television that it will purchase all of the shares "validly tendered" following its tender offer for the broadcaster's Series A shares, which expired at 5 p.m. yesterday.

According to a statement, Hearst has advised Hearst-Argyle that as of the expiration, a total of approximately 13,763,289 shares of Hearst-Argyle Series A Common Stock had been tendered. Coupled with the shares already owned by Hearst, it will hold approximately 96% of the 94,254,329 outstanding shares of Hearst-Argyle common stock.
Hearst had initially offered $4 a share in March, and upped it to $4.50 in April. In the summer of 2007, Hearst had made an offer of $23.50 a share. Multiple insiders on the deal said this week they'd be shocked if Hearst didn't succeed in its bid.

Hearst has advised Hearst-Argyle that after it completes its purchase, it will move ahead on a merger in which Hearst-Argyle will become a wholly-owned subsidiary of Hearst and change its name to Hearst Television Inc. In the merger, all shares held by the remaining public shareholders of Hearst-Argyle will be cancelled and, subject to the shareholders' rights to exercise statutory appraisal rights, converted into the right to receive $4.50 per share in cash, without interest.

Hearst plans to complete the merger within the next several business days, it says, at which point Hearst-Argyle's shares will no longer be traded on the New York Stock Exchange.

 

Want to read more stories like this?
Get our Free Newsletter Here!
August

Cloud Summit

Raleigh Marriott City Center, Raleigh, NC

October