Richmond’s Huntingdon Real Estate Investment Trust (TSX:HNT.UN) is urging the board of Fisher Communications Inc. (Nasdaq:FSCI) to reconsider its “hasty decision” to reject a US$211 million offer made on December 6 by Huntingdon to acquire the Seattle-based broadcaster.
Huntingdon went public with the terms of its proposal on Monday in hopes both public and shareholder scrutiny of the deal may sway Fisher’s board to re-think its decision.
Fisher, which owns media properties across the Western U.S., informed Huntingdon four days after the offer was made that the business combination was not in the best interests of Fisher and its shareholders.
In a public letter to Fisher on Monday, Huntingdon urged Fisher’s board to consult with the company’s shareholders about their views of both the merits of Huntingdon’s proposal and the proper process for evaluating it.
Huntingdon said it was astonished Fisher rejected its proposal in four days and without any communication with Huntingdon or its advisers.
“Equally astonishing is the complete absence in that letter of any attempt to explain on what basis the Fisher board reached its conclusion that the proposal is not in the best interest of Fisher and its shareholders,” said the letter, which was signed by Zachary George, Huntingdon’s president and CEO, and Gary Goodman, chairman of its board of trustees.
Under Huntingdon’s offer, Huntingdon would acquire all of the outstanding shares of Fisher common stock. Fisher shareholders would receive the equivalent of US$23.99 per share for Fisher, which is an 18% premium on Fisher’s Dec. 3 share price.
Fisher’s share price rose 7% on Monday, closing at US$23.45.
Huntingdon’s unit price range during the last week: $6.72 and $7.02; 52-week high: $7.22; 52-week low: $4.32.