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InterMedia trumps Stan Kroenke’s offer for Outdoor Channel

The battle for control of Outdoor Channel has taken another twist with InterMedia putting in a higher offer for the US cable net than that lodged by sport and media entrepreneur Stan Kroenke’s company.

InterMedia had lined up a merger deal with Outdoor before KSE stepped in with a higher value bid. Both maintained they had offered the best deal, but Outdoor Channel’s owners designated KSE’s the preferred bid. InterMedia’s earlier cash and stock offer was worth US$208 million and KSE’s about US$227 million, but the former maintained its is the better proposal.

However, InterMedia has now stepped in with an offer worth US$9.15 per share or about US$237 million.

In a letter to Outdoor Channel shareholders it said the offer on the table for full control of the net “will provide your stockholders with substantially greater value than they would receive under your currently pending merger agreement with Kroenke Sports & Entertainment”.

The letter added: “Our proposal is clearly superior to the transaction with KSE as our per share cash price represents a premium over the cash price that your stockholders would receive under the merger agreement with KSE. We are confident that you, after consultation with your outside legal counsel and financial advisors, will conclude that our proposal constitutes a superior proposal.”

In its offer to shareholders, KSE had said its bid was superior because it removed what it termed “uncertainties tied to financing” and offered a better purchase price. In response, InterMedia said yesterday that it has the finance in place to execute the deal and added that antitrust approval has already been granted after the earlier planned merger deal.

The future ownership of the channel will be decided within weeks. Its shareholders are scheduled to meet on May 8 to vote on the KSE deal. With that in mind, InterMedia said its offer will remain on the table until 5pm PST on May 7.

InterMedia had lined up a merger deal with Outdoor before KSE stepped in with a higher value bid. Both maintained they had offered the best deal, but Outdoor Channel’s owners designated KSE’s the preferred bid. InterMedia’s earlier cash and stock offer is worth US$208 million and KSE’s about US$227 million, but the former maintained its is the better proposal.