Outdoor Channel Shares Jump After Counterbid From InterMedia
Outdoor Channel Holdings Inc. (OUTD), the owner of a cable-TV network with hunting and fishing programs, jumped 7.5 percent after receiving a $9.15-a-share bid from InterMedia Outdoors Holdings LLC.
The move continues a bidding war between InterMedia and Kroenke Sports & Entertainment LLC for Outdoor Channel, which climbed to $9.41 at 1:47 p.m. in New York. The stock had already risen 15 percent this year through yesterday. The new bid values the company at about $237 million.
Outdoor Channel had agreed to an $8.75-a-share price from Kroenke in March, following an earlier deal with InterMedia that offered 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 of a share. The $9.15-a-share bid is an all-cash transaction, InterMedia said in an open letter to Outdoor Channel’s board.
“We are confident that you, after consultation with your outside legal counsel and financial advisers, will conclude that our proposal constitutes a superior proposal,” InterMedia said.
InterMedia, based in New York, has said that it intends to create a new publicly traded company combining its Sportsman Channel and 15 magazines with Outdoor Channel. 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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