Boston, MA 06/14/2013 (wallstreetpr) – Shares of Belo Corp. (NYSE:BLC) were up by 28.33% to close at $13.77 with volume of 71.11 million shares traded compared to average volume of 1.85M. The stock has been rallying since long.
Belo’s group of television stations Belo Corp. (NYSE:BLC) is one of the most respected and leading cable news channel in the nation. The Company’s 20 stations deliver outscoring national award winning journalism.
The Company’s Board of Directors in the year 2008 approved to demerge their Newspaper business segment from the Television business segment into a public traded company called A.H.Belo Corporation. A.H. Belo is not affected by the Gannett acquisition and is continuing with its daily press releases and magazines. The company also publishes websites and media publications and has commercial printing operations.
Belo Corp. has entered into a merger agreement with Gannett which will acquire all the outstanding shares of Belo for $13.75 per share in cash, which approximately sums up to $1.5 million, along with an existing debt of $715 million. The total amount of consideration paid by Gannett will be $2.2 million. The shareholders of Belo Corp. are paid at a premium of 28.1 percent to the closing price of Belo’s closing stock price as on June 12, 2013.
Pomerantz Grossman Hufford Dahlstrom & Gross LLP who is appointed by the investors of Belo Corp. to investigate on behalf of them, regarding the proposed acquisition of Belo by Gannett Co., Inc.
The investigation mainly deals with the following matters.
1. Is the compensation of $13.75 per share adequate for the shareholders?
2. The stock price of Belo has been correctly adopted.
3. has the Board of Director’s of Belo attempted to obtain the best deal for the company and their investor’s i.e., has the board duly complied with their fiduciary duties.
