Meredith Tries to Block Negotiated Nexstar/Media General

Nexstar finished negotiating terms to buy Media General, but “there can be no assurance that any transaction with Media General will result” because the Meredith/Media General agreement hasn't been terminated, said Nexstar and Media General in news releases Thursday. Under the original agreement with Meredith, Media General can't sign a deal with Nexstar until the Meredith pact is terminated, Media General said. Media General has made several proposals to Meredith to terminate the Meredith agreement, and “to date, Meredith has been unwilling to accept these offers,” Media General said: If Meredith doesn't agree to terminate the deal, Media General will hold a shareholder meeting on the Meredith transaction “as soon as possible.” If Media General shareholders reject the deal, the agreement with Meredith allows Media General to terminate the Meredith deal, Media General said. Under the Nexstar proposal, Nexstar would acquire Media General for $10.55 per share in cash, shares of Nexstar stock and a “contingent value right” for cash proceeds from the sale of Media General spectrum in the incentive auction. Nexstar said it intends to divest the TV stations necessary to obtain FCC regulatory approval. Meredith put forth a new proposal for a “merger of equals” between Meredith and Media General, which would allow that deal to “continue along the current regulatory approval timeline,” Meredith said in a news release. Nexstar and Media General won't be able to file their deal with the FCC before the Jan. 12 reverse auction quiet period, Meredith said. “Thus, a Nexstar-Media General combination could not be completed for at least a year, if not longer, significantly delaying any financial benefit to Media General shareholders, and exposing the transaction to potential market and industry risks.”