Report: Media General Ends Meredith Deal

Media General’s $2.4 billion agreement to acquire Meredith Corp. is dead, two sources close to the deal said.

One day after The NY Post reported exclusively that a second major Media General shareholder opposed the deal, it has become clear that there is not enough shareholder support to approve it, two sources close to the situation said Tuesday.

The shareholder revolt comes days after the company announced on Sept. 28 that rival Nexstar Broadcasting had made an unsolicited $14.50-per-share stock and cash proposal to buy Media General.

On Tuesday, nypost.com broke the news that 7-percent-shareholder Oppenheimer opposed the Meredith deal. Earlier, activist Starboard Capital, a 4.5-percent shareholder, went public saying that it was against the acquisition.

Meredith shares, which spiked to $50.47 the day Media General announced its $51.53-a-share deal, have been generally selling off since.

On Tuesday, Meredith shares closed up 30 cents, to $43.70 — slightly below the point before the Media General deal was announced.

Meanwhile, shares of Media General stock closed down 10 cents, to $13.92.

For Meredith, this could be the second time it has been left at the altar.

Media General declined comment.