Gannet Company Agrees To Acquire Belo Corporation (BLC) For $1.5 Billion

By on June 14, 2013
Unfair Belo shareholder deal

Belo Corporation (NYSE: BLC), owner of local television stations and websites, and the Gannett Company have come to terms on a deal that would buy out current Belo shareholders for $13.75 per share in cash.  The transaction is valued at approximately $1.5 billion, plus the assumption of $715 million in debt.

The offer price is a 14% premium to Belo’s closing price on Wednesday.  Shares of Belo jumped 28.33% in reaction to the deal announcement and closed at $13.77 per share on Thursday, June 13.

News of the merger has triggered investigations by law firms who are looking into whether the deal is fair for Belo shareholders.   The investigations focus on whether Belo’s board of directors breached their fiduciary duty to shareholders by not seeking out competitive offers.

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