The Board of Directors for the E. W. Scripps Company has voted unanimously to reject an unsolicited offer made by Sinclair, Inc. last month, saying the bid was not in the best interest of the company or its shareholders.
On Tuesday, Scripps executives said the vote came after a “careful review and evaluation” of the offer and consultations with financial and legal advisors, the outcome of which favored a vote against Sinclair’s proposal.
“The board is committed to acting in the best interests of all Scripps shareholders as well as the company’s employees and the many communities and audiences it serves across the United States,” Kim Williams, the Chair of Scripps’ Board of Directors, said in a statement. “After careful consideration, Scripps’ board determined that Sinclair’s unsolicited acquisition proposal is not in the best interests of Scripps and its shareholders.”
Williams said Scripps is still open to “evaluating opportunities to enhance shareholder value” and will continue to evaluate further offers, including proposed acquisitions, down the road.
Sinclair owns nearly 10 percent of Scripps publicly-traded stock. Last month, the board at Scripps adopted a shareholder rights plan that gave voting status to common stockholders if Sinclair acquired more stock in the future.
Sinclair made public its own offer that valued the remainder of Scripps’ stock at $7 per share, something the company felt was lower than the actual and presumed value of its assets. Scripps retained Morgan Stanley as financial advisors and the legal firm of Weil, Gotshal and Manges to help it scrutinize Sinclair’s offer.
A Sinclair spokesperson has not yet returned a request for comment.
