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updated 16:40, Sun October 14, 2007

Hearst Tender Offer for Outstanding Stake in Hearst-Argyle Television Expires

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NEW YORK (AP) -- Privately-held newspaper publisher Hearst Corp. said Friday it ended its $600 million tender offer for all the Hearst-Argyle Television's shares it does not own because the offer expired.

All Hearst-Argyle Television shares tendered will be returned.

Hearst announced the offer to acquire the 27 percent stake it does not own in the company in August. However, late last month a special committee of Hearst-Argyle's board determined the offer was not in the best interest of its shareholders. Hearst-Argyle said its committee found that the offer undervalues the shares and doesn't adequately reflect the company's value and potential.

Hearst owns the Houston Chronicle and San Francisco Chronicle newspapers, among others. Hearst-Argyle owns 29 television stations that reach about 18 percent of the U.S. viewers.

Hearst-Argyle shares fell 54 cents, or 2.2 percent, to $24.50 during aftermarket electronic trading, after closing down 26 cents at $25.04.

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