Buyout Of Lin – Law Firm Seeks Higher Price For Shareholders
March 21, 2014
New York, New York
Tripp Levy PLLC, a leading securities and shareholder rights law firm that represents shareholders throughout the nation, announces that it is investigating the acquisition of LIN Media LLC (NYSE: LIN) on behalf of shareholders. Media General, Inc. (NYSE:MEG) and LIN Media LLC (NYSE:LIN) today announced that they have entered into a definitive merger agreement. Under the terms of the agreement the shareholders of LIN Media will receive aggregate consideration valued at $1.6 billion in a combination of stock and cash, or approximately $27.82 per share.
Royal W. Carson, III, a director of LIN Media, and affiliates of HM Capital Partners I LP HMC, who together beneficially own all of the LIN Media Class C shares and therefore possess 70% of LIN Media LLC’s combined voting power, have agreed to vote in favor of the transaction. Affiliates of Standard General, which hold approximately 30% of Media General’s shares, have also agreed to vote in favor of the transaction
The investigation concerns whether the board of directors and senior management of LIN breached their fiduciary duties by not engaging in a full and fair auction and process to sell the company so that shareholders received the maximum value for their shares, and whether the pro rated price of $27.82 per share is unfairly low. Indeed, analysts have projected that the stock is worth at least $32 per share and the stock traded as high as $29.24 recently.