Thursday, September 27, 2007

Station group urges rejection of Hearst bid

Privately-held Hearst Corp., owner of the Chronicle, also owns 73 percent of Hearst-Argyle Television. Today, a special committee of Hearst Argyle's board recommended that shareholders reject Hearst's offer to buy the company's remaining shares. Publisher Hearst wants to buy the public minority stake it does not already own in Hearst-Argyle Television for $23.50 per share, or about $600 million. Hearst-Argyle (HTV) closed Thursday at $26.05 — $2.55 better than Hearst's offer. The price has been rising ever since Hearst announced its bid. Hearst-Argyle owns 26 TV stations including KRCA Channel 3 in Sacramento. As the Press Club reported Sept. 7, one shareholder group in Northern California had sued to stop the buyout and another suit was in the works.

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