Hearst is seeking to buy the 48% of outstanding series-A common shares of Hearst-Argyle in a $600 million transaction. The company wanted to strike the deal at $23.50 per share, a 15% premium to where the stock was trading when the deal was announced Aug. 24. The stock traded well over the tender price for the past month and closed the session Thursday just over $26 per share.
After reviewing the offer, a special committee to Hearst-Argyle’s board of directors Thursday recommended that stockholders reject the bid, saying that it undervalued the stock and didn’t reflect the prospects of the company.
Hearst, a diversified media company with publishing and cable assets, already owns 100% of the class-B stock and, following the tender, Hearst-Argyle would be a wholly owned subsidiary.
Broadcasting operator Hearst-Argyle’s assets include 29 television properties and two radio stations.