Hearst Corp. Raises Offer for Remaining TV Stake

Hearst Corp. on Monday boosted its offer price for the remaining stake in Hearst-Argyle Television Inc. by 12.5 percent.
Hearst, which already owns 67 percent of Hearst-Argyle’s common class A stock, raised its offer price by 50 cents a share to $4.50, a slight discount to Hearst-Argyle’s closing stock price on Friday of $4.55.
Based on discussions with a special committee of independent Hearst-Argyle board members, Hearst expects the committee to recommend that Hearst-Argyle shareholders accept the tender offer.
Hearst said it plans to commence a tender offer for the remaining shares within the next several days.
Last month, Hearst offered to pay $4 a share for the stake it did not already own, representing a 91 percent premium over Hearst-Argyle’s closing stock price of $2.09 on March 24, the day before Hearst announced its bid. That fell well below the bid Hearst made in 2007 at $23.50 per share.
Hearst-Argyle owns and operates 29 television stations.
In trading just after the opening bell, Hearst-Argyle shares lost 5 cents to $4.50.