With two prospective buyers competing to buy the Outdoor Channel, a shareholder vote scheduled for Wednesday has been postponed. Meanwhile,
shares in the parent company were trading at around $10 a share -- a signal that investors believe a higher bid still awaits.
On Monday, Outdoor Channel Holdings said its board has notified Kroenke Sports & Entertainment (KSE) that it intends to instead accept a bid from InterMedia Partners at $9.75 a share.
KSE has until May 9 to increase its $9.35-a-share offer. If KSE walks away, it would receive a $1 million breakup fee.
The bidding war dates back to last year when InterMedia offered to buy the network in a deal where shareholders could receive $8 a share. InterMedia, where media entrepreneur Leo Hindery is a top executive, wants to combine operations of the Outdoor Channel with its Sportsman Channel and outdoor enthusiast magazines.
KSE, controlled by sports entrepreneur Stan Kroenke, owns the Denver Nuggets, Colorado Avalanche and a regional sports network.
Outdoor Channel Holdings, which also owns aerial camera operations, had net income of less than $2 million in 2012.
Ad dollars were around $37 million last year, essentially flat compared to 2011. Subscription revenues did grow by about $1.4 million.