Shareholder Rejects Hearst Bid For Hearst-Argyle

SHAREHOLDER REJECTS HEARST BID FOR HEARST-ARGYLE
[SOURCE: MediadailyNews, AUTHOR: David Goetzl]
Marathon Partners, which owns 90,000 shares of Hearst-Argyle, is urging the Hearst-Argyle board to reject an offer from Hearst to buy the broadcasting group. "It is absolutely clear that the current offer does not fairly compensate the shareholders of (Hearst-Argyle) for the unique and valuable assets the company controls," Mario Cibelli, the managing member of Marathon, wrote to the board--calling the offer price "unacceptably low." Cibelli also accused Hearst Corp. management of trying to capitalize on Wall Street's recent downturn to nab full ownership of the company at a low price. (It already owns some 73%, and is seeking the rest.) The H-A assets include management of 29 TV stations (eight in top-25 markets), a stake in Internet Broadcasting and the possibility of future growth through retransmission consent dollars.
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