The Wall Street Journal: Media General rebuffs sweetened takeover bid from Nexstar
Media General Inc. has rebuffed a sweetened takeover bid from Nexstar Broadcasting Group Inc., leaving the two TV station owners at a negotiating impasse, according to people familiar with the matter.
Nexstar NXST, -3.19% last week privately offered a package of cash and stock worth about $ 16.30 a share based on Tuesday’s close, the people said. Media General rejected that bid and instead made a counterproposal seeking about $ 18.60 a share, which Nexstar deemed too rich, the people said.
Nexstar publicly bid $ 14.50 a share in September. Its new bid slightly increased the cash portion and added more stock, the people said. A rise in Nexstar’s stock price since then also accounts for some of the bump.
Media General shares MEG, -3.38% closed at $ 14.58 on Tuesday.
Nexstar has been trying to break up Richmond, Va.-based Media General’s planned purchase of Meredith Corp. That deal, under which Media General would pay about $ 2.4 billion in cash and stock for its smaller rival, was poorly received by Media General investors, who must approve it.
Nexstar went public Sept. 28 with its bid. Media General agreed last month to negotiate with Nexstar and brought in new advisers to run the talks, but the two sides have struggled to reach an agreement.
An expanded version of this report appears at WSJ.com.