Hearst Ups Bid for Stations Group Stake

NEW YORK: Hearst Corporation has increased its bid for the remaining stake in Hearst-Argyle Television it doesn’t already own from $4.00 per share to $4.50.

The new offer represents a 12.5-percent increase over the original proposed offer price of $4.00 per share, and a premium of approximately 115-percent over the closing price of the shares on March 24, 2009, the last full trading day prior to the first public announcement of Hearst’s proposed offer. The move follows discussions between Hearst and the special committee of independent members of the board of directors of Hearst-Argyle appointed to review the offer. Hearst says it expects that the special committee will recommend that the stockholders of Hearst-Argyle accept the tender offer.

Hearst-Argyle Television operates 29 stations, reaching a combined 18-percent of U.S. viewers.