NEW YORK: Hearst Corp. upped its offer for the one-third portion of Hearst-Argyle TV it doesn’t already own, from $4 to $4.50 per Class A share, the mothership announced today. Family-owned Hearst Corp. said the new offer represented a premium of around 115 percent over the closing price of shares on March 24, the last trading day before Hearst announced its intention, and a premium of around 154 percent above the average closing prices of shares for the 20 days proceeding March 24.
The company raised its offer after meeting with Hearst-Argyle (NYSE: HTV) board members, and based on the resulting discussions, HTV shareholders are expected to approve the newly priced deal. Hearst said it expected to formally tender the offer within the next few days, with Lazard acting as financial advisor.
Hearst made the unexpected play for Hearst-Argyle’s 29 TV stations late in the first quarter when shares were trading at around $2. They immediately shot up above $4 where they’ve stayed since the announcement. Today’s open was $4.60. -- Deborah D. McAdams
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