Updated at 2:59 p.m., Monday, August 27, 2007
KITV owner sets committee review for $600M buyout
Advertiser Staff
Hearst-Argyle Television Inc., the television station owner that counts Honolulu's KITV among its properties, said a $600 million buyout offer from majority owner Hearst Corp. will be reviewed by a special committee of independent board members.The announcement followed one Friday by New York-based Hearst, which offered $23.50 a share for all series A common stock it didn't already own in the television company. As of Friday Hearst owned 52 percent of the series A shares and 100 percent of its series B shares, giving it about a 73 percent stake and voting power in the broadcaster.
Hearst said if successful with the buyout offer, Hearst-Argyle would become a wholly owned subsidiary. Hearst also owns 12 daily newspapers, including the San Francisco Chronicle, and 31 weekly newspapers. It owns about 200 magazines including Cosmopolitan and has ownership stakes in several cable networks.
Hearst-Argyle owns 26 stations and manages three television and two radio stations. The broadcaster said the independent committee is to advise stockholders its position regarding Hearst's tender offer.
