After first embracing and then withdrawing endorsement of a $3.80 per share buyout bid from Cox Enterprises, the special committee of independent directors at Cox Radio has now recommended that shareholders accept an improved offer of $4.80.
Here is the announcement made Thursday morning: “Cox Radio, Inc. (NYSE: CXR) today announced that as a result of Cox Enterprises, Inc., through its wholly owned subsidiary Cox Media Group, Inc., raising the offer price to $4.80 per share, the Special Committee has unanimously recommended, on behalf of Cox Radio, that the stockholders of Cox Radio accept the tender offer and tender their shares of Class A common stock pursuant to the tender offer prior to the expiration of the tender offer at 12:00 midnight, New York City time, on Wednesday, May 13, 2009. Cox Radio also today filed a revised Solicitation/Recommendation Statement in an amendment to Schedule 14D-9 announcing that the Special Committee of the Board of Directors of Cox Radio has changed its previous position that it could not express an opinion with respect to the tender offer.”
Several class action lawsuits were filed after the initial offer was announced, claiming that the $3.80 bid by Cox Enterprises was unfair to minority shareholders. There’s no word yet on how the lawsuits will be impacted by the increased bid.