Media General To Open Merger Talks With Nexstar, After Pressure From Starboard

Media General Inc. said it will open discussions with Nexstar Broadcasting Group Inc. , regarding Nexstar's unsolicited buyout bid launched in late September. The TV station operator said its board has unanimously rejected Nexstar's bid, saying it "significantly undervalues" the company, but will engage in private negotiations. Last week, New York hedge fund and activist investor Starboard Value L.P. had urged Media General to begin merger negotiations with Nexstar, which had made a mid for Media General on Sept. 28. Media General said the talks follow the determination under its merger agreement with Meredith Corp. that allows it to explore other potential deals. Media General's stock, which was still inactive in premarket trade, has shot up 20% over the past three months while the S&P 500 has lost 3.3%.