Tegna drops after a court declines to speed up Standard General deal review at FCC

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Tegna (NYSE:TGNA) fell 3.1% after an appeals court declined to speed up a regulatory review of Standard General's $5.4 billion purchase of the TV broadcaster.

The U.S. Court of Appeals for the District of Columbia Circuit rejected Standard General's plea for the Federal Communications Commission to decide to approve the deal or deny it by April 28, according to a Bloomberg report, which cited the court order.

The denial comes after the FCC in late February said that Tegna's (TGNA) planned $24 a share sale to Standard General had to go to an administrative law judge. Tegna shares have plunged since Feb. 24, when the FCC "effectively killed" the deal, analysts said at the time.

Standard General has been racing to complete the deal before a May 22 termination deadline for the deal, when financing is set to expire.

Standard General sued the FCC in the U.S. Court of Appeals for the D.C. Circuit late last month. The FCC's Media Bureau gave the deal "unprecedented -- and unfounded -- scrutiny," Tegna said, arguing that the agency declined offers to meet and far outpaced a typical 180-day "shot clock" for such deal reviews.

On Monday Standard General said that it reached an agreement with the International Alliance of Theatrical Stage Employees, one of TEGNA’s largest unions, in connection with its pending acquisition of Tegna (TGNA).

Comments

[JunkBondage]

I never thought this deal would've been blocked. It's somewhat unprecedented, but that's what happens when a bunch of progressives are put in charge of Federal agencies. Talk about a business-hostile administration. The current crop makes Obama and "Bubba" Clinton look like raging capitalists. This is another step down in the decline of America. I wish I'd been born in Australia.

[TGAgrippa]

This likely ends the buyout drama. Hard to see what's left for Standard General to do. I don't see this going to the Supreme Court. Will be interesting to see if and when Tegna claims its termination fee, which I think is $136 million.

[Fool'sGold]

@TGAgrippa I agree it seems as though they have exhausted remaining remidies. Brutal. Keeping with the "shot clock" analogy, this one seemed like such a slam dunk.