The Shareholders Foundation announces that an investor, who currently holds shares of LIN MEDIA LLC (NYSE:LIN) filed a lawsuit in effort to halt the takeover of LIN MEDIA LLC by Media General, Inc for a value of approximately $27.82 per share.
Investors who purchased shares of LIN MEDIA LLC (NYSE:LIN) and currently hold any of those (NYSE:LIN shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:LIN stockholders by agreeing to sell LIN MEDIA LLC too cheaply via an unfair process to Media General, Inc.
On March 21, 2014, Media General, Inc. (NYSE: MEG) and LIN Media LLC (NYSE: LIN) announced a merger agreement. Under the terms of the agreement, and based on Media General’s trailing 20-day volume weighted average price on March 19, 2014, 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 if prorated ratably.
However, the plaintiff claims that the offer is too low and undervalues LIN Media LLC. Indeed, at least one analyst has set the high target price for NYSE:LIN shares at $32.00 per share and that NYSE:LIN shares traded before the takeover announcement in the open market on December 31, 2013 as high as $28.71 per share. Furthermore, LIN MEDIA LLC’s performance improved recently. For instance, its Total Revenue rose from $553.46 million in 2012 to $652.36 million in 2013 and its Net Loss of $7.04 million in 2012 turned into a Net Income of $158.11 million in 2013.
In addition the plaintiff says that the process is unfair to NYSE:LIN stockholders too. Indeed, 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 and, that affiliates of Standard General, which hold approximately 30% of Media General’s shares, have already agreed to vote in favor of the transaction.
Shares of LIN MEDIA LLC (NYSE:LIN) closed on April 25, 2014, at $23.82 per share.
Those who are current investors in LIN MEDIA LLC shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com