(Reuters) - Canadian media company Torstar Corp (TSb.TO) said late Monday its board has recommended the proposed acquisition by private equity firm NordStar Capital, snubbing an offer of 80 Canadian cents per share in cash from Canadian Modern Media Holdings Inc.
The board determined that Canadian Modern’s updated proposal earlier in the day did not constitute a superior proposal under the Nordstar agreement, as it would not be reasonably capable of being completed without undue delay relative to the NordStar transaction, Torstar said.
Torstar is the publisher of the Toronto Star, Canada’s largest daily newspaper, as well as various regional and community newspapers.
“We believe that CMMH’s submission of a proposal today is disingenuous and made for the purpose of confusing shareholders,” Chair of Board John Honderich said.
Earlier this month, Torstar reached an amended agreement to be acquired by NordStar at a price of 74 Canadian cents per share, a 17.5% increase over NordStar’s previous bid.
Torstar had 71.5 million outstanding shares that last traded at 73 Canadian cents, as of Monday’s close.
Canadian Modern had earlier launched an unsolicited bid to acquire Torstar shares for a combination of 72 Canadian cents per share in cash and the issuance of one non-transferable contingent value right per share.
Reporting by Praveen Paramasivam in Bengaluru, Editing by Sherry Jacob-Phillips