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Tegna Seats, Possible Sale Are Said to Be Sought by Investor

Y2kTheNewOldies

Y2kTheNewOldies

https://www.bloomberg.com/news/arti...id-to-seek-tegna-board-seats-strategic-review

One of the largest shareholders in Tegna Inc. has asked for two seats on the board of the broadcaster and called on it to launch a strategic review, including a possible sale of the company, according to people familiar with the matter.

Standard General LP, which owns a 9.8% stake in Tegna, is prepared to start a proxy fight if its demands aren’t met, said the people, asking not to be identified because the discussions are private. The New York-based hedge fund, which has discussed its views with management, is Tegna’s third-largest holder, according to data compiled by Bloomberg.




A representative for Standard General declined to comment. A representative for Tegna wasn’t immediately available for comment.

Standard General believes there are plenty of potential partners for a takeover of the company or a merger, the people said. The firm believes Tegna’s current strategy, including its dealmaking, has led its shares to perform worse than its peers, they said.

Tegna rose 0.9% to $15.30 in New York trading Monday, giving the company a market value of about $3.3 billion. The shares are up almost 33% in the past year.
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Wow this comes after Tegna got divested Nexstar stations from Tribune in a deal.
 
Could Sinclair become a player in this? Or are they dead money after the Tribune attempt?
 
But wait, how can this investor sway management with only a 9.8% stake? He shouldn't have enough influence to do so, at least that's the theory that's been espoused elsewhere on this board.

Tegna management has made some lackluster deals, so the investor has a point. I'm not sure a sale would unlock the most value though. I think a management shakeup and some targeted divestments might be what results.
 
umfan said:
But wait, how can this investor sway management with only a 9.8% stake? He shouldn't have enough influence to do so, at least that's the theory that's been espoused elsewhere on this board.
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He's trying to get two seats on the board. The size of his investment is bigger than Elliott's.
 
No, he's trying to get two seats OR force a sale. It's the same principle. You were incorrect in the other discussion and have taken a contrary view here.
 
umfan said:
No, he's trying to get two seats OR force a sale. It's the same principle. You were incorrect in the other discussion and have taken a contrary view here.
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I think I'm pretty consistent. So far, neither have actually achieved their goal. As I said, companies have ways of appeasing renegade stockholders.

We'll see what happens in both situations. I think it will cost Elliott more money if he wants to make an impression.

He thinks AT&T is worth $60 a share. I hope he's right, because I am also a stockholder.
 
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