• by David Goetzl  @dgoetzl, April 27, 2009

Unwilling to risk failing to take full control of the Hearst-Argyle station group, Hearst Corp. is increasing its bid for the remaining shares it doesn't own to $4.50 a share. In March, it had offered $4 per share.

The new bid may be right where investors want it: Trading on the stock closed at $4.50 Monday.

Privately owned Hearst Corp. apparently received some unwillingness from two independent Hearst-Argyle directors to make the $4-a-share deal. Hearst Corp. said discussions with the pair led it to increase the offer -- and it now expects the two directors to endorse it.

Hearst Corp., which owns 82% of the station group, had previously said moving forward on the deal was not contingent on the support of the two directors, but it seemingly was looking for unanimity from the full board of directors.

Hearst-Argyle operates 29 local stations and is the second-largest owner of NBC affiliates.

In 2007, those same two directors -- investment executives David Pulver and Caroline Williams -- recommended that Hearst-Argyle reject a Hearst Corp. bid at $23.50 a share. That was before the economic meltdown, and Wall Street souring on pure-play station-group stocks. Hearst Corp. ultimately withdrew that deal, valued at $600 million.

Hearst Corp., which also owns publications such as Cosmopolitan and The Houston Chronicle, has said owning Hearst-Argyle in full will help the station group "navigate the troubled waters" of today.

Hearst Corp. had indicated it was confident its bid would eventually be accepted, partly because one firm that holds 7.7 million shares had endorsed the move.