WSJ: Media General Rejects Sweetened Takeover Bid From Nexstar

(RTTNews) - Television stations owner Media General Inc. (MEG) has rejected a sweetened takeover bid from Nexstar Broadcasting Group Inc. (NXST), the Wall Street Journal reported, citing people familiar with the matter.

According to the WSJ report, Nexstar last week privately made a cash and stock offer worth $16.30 per share based on Tuesday's close. However, the bid was rejected by Media General, which made a counterproposal seeking about $18.60 per share. But the counterproposal was deemed too rich by Nexstar.

Nexstar, in late September, made a public proposal to acquire Media General for $14.50 per share in cash and stock. While the offer was rejected by Media General, the company said its board has decided to engage in negotiations with Nexstar.

At that time, Nexstar noted that the proposed combination would be well positioned to deliver superior immediate and long-term shareholder value, compared to the proposed combination of Media General with diversified media company Meredith Corp. (MDP).

Media General, in early September, agreed to acquire all of the outstanding common stock of Meredith in a cash and stock deal valued at about $2.4 billion.

MEG closed Tuesday's trading at $14.58, down $0.51 or 3.38 percent on a volume of 1.64 million shares.