The Nostalgia Network, the money-losing cable channel being sought by a handful of suitors, encouraged shareholders to spurn a tender offer made by Pat Robertson’s International Family Entertainment Inc. last week.
IFE bid roughly $ 40 million in cash to acquire all of Nostalgia’s outstanding stock, after rival bidder, Concept Communications, disclosed it was buying Nostalgia shares on the open market.
IFE bid $ 2 a share in cash for common stock and $ 200 a share for preferred stock in an offer that will expire Dec. 22.
Nostalgia said in a press release it will review the bid with its investment adviser, Allen & Co., in the “required time.” The company also “urged shareholders not to tender their shares until they could consider the board’s recommendation.”
Nostalgia’s board has been split between loyalists to chairman Michael Marcovsky and representatives of Concept.