May 22 (Reuters) – Television operator Tegna (TGNA.N) said on Monday it had surmounted several regulatory hurdles and canceled a merger deal with hedge fund Standard General.
Tegna agreed last year to be taken private by Standard General in a deal worth $8.6 billion, including debt. At the time, the acquisition was expected to close in late 2022.
However, the deal drew criticism from some lawmakers, including then-Speaker of the House Nancy Pelosi, over concerns about rising consumer TV prices and potential job losses.
The Federal Communications Commission (FCC), which regulates the U.S. telecommunications industry, decided in February to hold public hearings on bids by hedge funds that have historically wrecked deals.
Standard General sued the FCC in March over that decision, but the appeal was later dismissed by the United States Court of Appeals for the District of Columbia.
The hedge fund will pay Tegna $136 million in termination fees. Reuters did not respond to a request for comment.
Shares of Tegna, which operates 64 TV stations in 51 U.S. markets, rose 3% in extended trading.
The company announced on Monday that it will accelerate its share buyback program worth $300 million. Tegna had paused its share buybacks after announcing the deal.
Reported by Thorasis Bose of Bangalore.Editing: Devika Shamnath
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