Hedge Fund Criticizes FCC Over Pending Hearing

Hedge fund Standard General sharply criticized the FCC's decision to hold hearings on its $5.4 billion plan to buy television station operator Tegna, saying on Monday it was "tantamount to denying" the deal, reports Reuters.

The FCC, which regulates telecommunications, said on Friday it would hold a hearing on the planned acquisition of Tegna, which manages 64 stations in 51 U.S. markets. Lengthy hearings have historically led deals to collapse. The Media Bureau made the decision rather than the full commission.

Standard General said it would press on with the planned acquisition and called on the FCC commissioners, two Democrats and two Republicans, to vote on the proposed transaction.

Standard General’s Managing Partner Soo Kim said the planned acquisition complied with FCC regulations and precedents. "Rather than rule on the transaction's merits, as the law requires, the Media Bureau is attempting to scuttle the deal by ordering a wholly unnecessary hearing process, that if left standing by the Commission, would kill the deal," Kim said

The FCC declined comment on Standard General's criticism.

In announcing the decision on Friday, the FCC said the "proposed transaction could artificially raise prices for consumers and result in job losses."

Republican FCC Commissioners Brendan Carr and Nathan Simington criticized the decision to refer the matter for a hearing.