Media General, Inc
) increased 4% to $18.05 after the company agreed to acquire LIN Media LLC for $1.6 billion. With the merger, the combined company will be the second-largest independent TV network operator with a reach of 25% of the U.S. households.
Media General after the deal will follow the largest Tribune Co which acquired Local TV Holdings for $2.7 billion. Media General said it plans to sell some stations in markets where regulators may worry about larger penetration.
LIN shareholders are expected to receive $27.82 a share in cash and Media General stock, based on the last one month of weighted average price.