Who Will Prevail in MG, Meredith, Nexstar Bids?
Meredith 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.