Nexstar at Impasse With Media General

Nexstar reached “an impasse” in negotiations to buy Media General, Nexstar said in a release Wednesday. Media General’s board rejected Nexstar’s revised proposal to buy the company at $16.31 per share, Nexstar said. Media General responded with a counterproposal that works out to $18.61 per share, Nexstar said. Nexstar CEO Perry Sook called the counteroffer “unrealistic” and “unreasonable,” the release said. “We will only consummate a transaction that makes sense for both companies’ shareholders,” Sook said. “Time is of the essence and further delays in reaching reasonable terms for a transaction could impact the value creation we outlined at the time we announced our original proposal,” he said. “Media General shareholders will be disappointed with their Board’s unreasonable negotiating position,” and Nexstar will “urge Media General to engage with us to reach a transaction on reasonable economic terms,” Sook said. “Our Board remains open to discussing and reviewing an improved proposal from Nexstar that would appropriately value the Company,” Media General said in its own release Wednesday. Media General asked Nexstar for its “best and final proposal” in a letter Monday, the Media General release said. “Rather than providing a revised proposal and continuing private negotiations, we are surprised that Nexstar issued today’s press release reiterating its previous proposal which our Board had already unanimously rejected,” Media General said. “It is unclear from Nexstar’s press release if its current proposal is indeed its best and final proposal,” it said. “The Board of Directors of Media General continues to recommend the proposed transaction with Meredith.”