Media General To Exchange Information With Nexstar Broadcasting

(RTTNews) - Media General Inc. (MEG) announced that it has reached an agreement with Meredith Corp. (MDP) that allows for the mutual exchange of certain non-public information with Nexstar Broadcasting Group Inc. (NXST).

The agreement will enable both Media General and Nexstar to further evaluate Nexstar's unsolicited September 28, 2015 proposal to acquire Media General. Accordingly, Media General will seek to enter into a confidentiality agreement with Nexstar and begin the exchange of information as soon as possible.

As previously announced on September 8, 2015, Media General entered into a definitive merger agreement with Meredith, under which Media General will acquire all of the outstanding common stock of Meredith in a cash and stock transaction. The Board of Directors of Media General continues to recommend the proposed transaction with Meredith.

Separately, Meredith confirmed that it has granted a Limited Waiver to Media General, Inc. in connection with the definitive merger agreement between Meredith and Media General announced on September 8, 2015.

The Waiver allows Media General to conduct due diligence on the unsolicited offer it has received from Nexstar Broadcasting Group, Inc., and to provide Nexstar with certain information to attempt to support its previously claimed synergies. Meredith believes this analysis will confirm that a Meredith-Media General combination is in the best interest of both companies' shareholders.

Additionally, Meredith said today it is increasing the estimated synergies from a Meredith-Media General combination to at least $85 million, up from the $80 million identified when the merger agreement was announced. Meredith also believes synergies could be even higher as the two companies move forward with integration activities.

In a separate press release, Nexstar Broadcasting Group commented on Media General, Inc.'s announcement that it will exchange information with Nexstar related to Nexstar's proposal to acquire Media General for $10.50 per share in cash and a fixed ratio of .0898 Nexstar shares per Media General share.

"We look forward to exchanging information with Media General and to promptly reaching agreement on a transaction that is in the best interests of our respective shareholders," said Perry Sook, Chairman, President and Chief Executive Officer of Nexstar.

"Since we made our proposal, many Media General shareholders have expressed their support for our proposed combination. The market has reacted favorably and currently values our proposal at $15.00 per Media General share, a premium of approximately 35% over Media General's share price on the trading day prior to our offer. We believe our proposal is a superior offer to the Meredith-Media General transaction and that the market understands how strategically and financially compelling this combination is for the shareholders of both companies," said Perry Sook.