Outdoor Channel Holdings Inc. (OUTD), the owner of a cable-TV network with hunting and fishing programs, said it received an unsolicited $227 million takeover bid from Kroenke Sports & Entertainment LLC.
The $8.75-a-share cash offer appears to be superior to the TV-network company’s previously announced plan to merge with InterMedia Outdoor Holdings Inc., Outdoor Channel said today in a statement. The board has authorized talks with Kroenke, it said.
The new offer may thwart closely held InterMedia’s plan to produce a new publicly traded company combining its Sportsman Channel and 15 magazines with Outdoor Channel. InterMedia had offered Outdoor Channel investors a choice of $8 cash a share, a new share of the new company or a combination of $4.46 in cash and 0.443 share.
InterMedia said today in a statement that Kroenke’s bid isn’t a superior offer, based on the value of comparable companies and the savings InterMedia would get by combining with Outdoor Channel.
Outdoor Channel, based in Temecula, California, rose 15 percent to $8.65 at the close in New York.
Closely held Kroenke, based in Denver, owns and operates the Denver Nuggets of the National Basketball Association and the Colorado Avalanche of the National Hockey League, in addition to the Pepsi Center, where both teams play, and other sports teams and venues.
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