Outdoor Suit Settles KSE Lawsuit
Outdoor Channel Holdings has nearly settled a suit that looked to block its acquisition by Kroenke Sports & Entertainment before the price was increased 17%. The suit alleged that KSE’s deal to buy the company at $8.75 a share marked a breach of fiduciary responsibility by the Outdoor Channel board.
Since the putative class action litigation was filed in Delaware Chancery Court by shareholder Roberta Feinstein, KSE has upped the price to $10.25 per share.
KSE, which seems to have finally won the bidding war to buy Outdoor Channel, was also a defendant in the suit. The parties in the suit have reached an agreement on the structure of a settlement.
KSE is controlled by sports entrepreneur Stan Kroenke, who owns the Denver Nuggets and Colorado
Avalanche. Its deal at $10.25 per share is 28% higher than the $8 valuation in InterMedia Partners’ 2012 agreement to buy Outdoor Channel, and it is 50% above Outdoor Channel’s
closing price a year ago.