Television station operator Tegna said Monday it has terminated its merger agreement with hedge fund Standard General after several regulatory hurdles.
Tegna last yr agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt. On the time, the acquisition was expected to shut within the second half of 2022.
Nevertheless, the deal attracted criticism from some members of Congress, including then-House Speaker Nancy Pelosi, on concerns of doubtless higher TV prices for consumers and job losses.
The Federal Communications Commission, which regulates the US telecoms industry, in February decided to carry a hearing on the hedge fund’s bid in a step that has historically led deals to collapse.
Standard General sued the FCC over its decision in March, however the appeal was later dismissed by the US Court of Appeals for the District of Columbia Circuit.
The hedge fund is anticipated to pay $136 million in termination fees to Tegna. It didn’t immediately reply to a Reuters request for comment.
Tegna last yr agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt.Bloomberg via Getty Images
The Federal Communications Commission in February decided to carry a hearing on the hedge fund’s bid in a step that has historically led deals to collapse.REUTERS
Shares of Tegna, which manages 64 TV stations in 51 US markets, rose 3% in prolonged trade.
The corporate also announced an accelerated share repurchase program value $300 million on Monday. Tegna had paused share repurchases after the deal was announced.
