Aug 23, 2013

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Morning Movers: Gannett Co. Inc. (NYSE:GCI) and Belo Corp. (NYSE:BLC)

Morning Movers: Gannett Co. Inc. (NYSE:GCI) and Belo Corp. (NYSE:BLC)

Gannett Co. Inc. (NYSE:GCI) and Belo Corp. (NYSE:BLC) reported that they received requests from the Department of Justice on Thursday for further information and documents associated to Gannett’s planned takeover of the broadcaster.

Belo’s shares tumbled 14% premarket, to $12.31, while Gannett’s shares were higher slightly premarket, at $25.28. Belo’s shares have been higher notably since the agreement was disclosed in June.

The firms reported a second request is a standard part of the Justice Department’s evaluation process, but does increase the waiting period under antitrust rules. The firms now are not permitted to end the $1.5 billion agreement until 30 days after they have complied with the second request.

Gannett, one of the biggest newspaper publishers in the US, and Belo reported that they would react promptly to the second request and carry on working cooperatively with the Justice Department as it executes its review of the agreement. The firms reported that they persist to anticipate closing the takeover by the end of 2013.

Additionally to antitrust acceptance, the agreement is expose to acceptance by the Federal Communications Commission, along with Belo shareholders. The whole cash agreement, which provides $13.75 for each Belo share, shows a 28% premium over the Dallas-located broadcaster’s ending price before the agreement being declared.

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