Marathon Partners wants Hearst-Argyle to reject tender offer

By Lisa Kerner

Charlotte, N.C., Aug. 28 - Hearst-Argyle Television, Inc. investor Marathon Partners LP asked the company's directors to reject outright the Hearst Corp.'s offer to acquire the company for $23.50 per share in a cash tender offer. The request was made in an Aug. 28 letter from Marathon managing member Mario D. Cibelli to the board members.

Marathon, which owns 90,000 common shares of Hearst-Argyle, cited specific concerns with the timing of the Hearst offer, the speed of the response required and "certain other dynamics."

"It is absolutely clear that the current offer does not fairly compensate the shareholders of Hearst-Argyle Television for the unique and valuable assets the company controls," the investor's letter stated.

Despite current market conditions, CiBelli said he has "not found a sudden need for liquidity nor do I find the offer price attractive." According to Marathon, Hearst-Argyle's shares closed at or above $23.50 on 134 out of 162 trading days this year, or 83% of the time.

Marathon is a New York-based investment partnership.

Hearst-Argyle is a New York network-affiliated television station owner/operator.

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