Who Will Prevail in MG, Meredith, Nexstar Bids?

By on Jan, 9 2016 with Comments 0

Dollar SignMeredith late Friday amended its proxy statement to the SEC concerning its binding merger agreement with Media General.

The move suggests it wants to save the deal “to create a powerful new multiplatform and diversified company” which it would call Meredith Media General; this is the deal Meredith is recommending shareholders approve. Nexstar offered MG shareholders $17.66 in cash and its own shares; it pegs the deal value at some $2.3 billion.

That’s because Media General announced it has its own deal to merge with Nexstar Broadcasting Group. Nexstar has twice sweetened its bid to acquire MG — and the tie-up would make moot its previous agreement to buy Meredith. That agreement had MG paying $2.4 billion to buy Meredith. Then Meredith offered MG shareholders $3.90 a share, as well as a ful share in the merged company.

These moves have triggered a bidding war, but it’s unclear how or when these deals could proceed, since Media General must first gain Meredith’s consent to terminate their merger agreement, reports MediaPost.

About The Author: Leslie Stimson has been a reporter for 35+ years, starting in radio news. She’s spent the last 20 years reporting for radio trades.

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