• by David Goetzl  @dgoetzl, April 13, 2009

The independent Hearst-Argyle directors who form a committee evaluating a bid by Hearst Corp. to take the station group private have retained Morgan Stanley to advise in the process.

Hearst Corp., which owns Cosmopolitan magazine and The Houston Chronicle, among other assets, has said it will make a $4-per-share bid later this month to acquire the remaining shares in the station group it doesn't already own.

The two-person special committee is comprised of two board members - investment-firm executives David Pulver and Caroline Williams -- who recommended that Hearst decline a much higher offer in 2007.

Pulver and Williams each received $150,000 to assess Hearst Corp.'s $23.50-a-share offer then. After the committee makes its recommendation about whether to take the offer, the full board of directors will advise shareholders which way to go within 10 days.

The share price of Hearst-Argyle, which manages 29 stations, was trading in the $4.50 range Monday.

Hearst Corp. has signaled that major shareholder Private Capital Management is in favor of the Hearst Corp. offer.