March 6 Kroenke Sports & Entertainment LLC said on Wednesday that it had delivered a definitive counter proposal to buy Outdoor Channel Holdings for $8.75 per share in cash, challenging a purchase offer by Leo Hindrey's InterMedia.
Outdoor Channel, which features programming aimed at hunters and other outdoor enthusiasts, said on March 4 that it received an unsolicited bid from Kroenke, which owns several Colorado sports teams, and that the Outdoor Channel board had authorized discussions with the rival bidder.
Kroenke said on Wednesday that its proposal was definitive and contained no financing or due diligence conditions.
It also said that if the board accepted its proposal it would set a breakup fee of $1 million, which it compared with the $6.5 million fee required by InterMedia.
Outdoor Channel announced Nov. 16 that it had agreed to merge with InterMedia in a cash-and-stock deal valued at roughly $208 million. InterMedia offered $8 or one InterMedia share for each Outdoor Channel share.
InterMedia operates the Sportsman Channel, another outdoor-themed cable network, and InterMedia Outdoors, publisher of magazines including Guns & Ammo and Petersen's Hunting. The company is controlled by private equity investment fund InterMedia Partners VII, which was founded by Hindrey. Hindrey is a former CEO of Tele-Communications Inc, AT&T Broadband and New York Yankees broadcaster The YES Network.