Tegna (TGNA ) fell 2% in premarket trading as Sen. Elizabeth Warren (D-MA) urged the Federal Communications Commission to block the planned sale to Standard General due to competition concerns.
"The FCC has significant and underutilized authorities to protect competition in the media industry by preventing deals that harm the public interest or reduce competition," Warren wrote in a letter Wednesday to FCC Chair Jessica Rosenworcel. "Given the admitted threats to competition and the known futility of behavioral remedies, I urge you to fulfill your statutory duty by blocking this acquisition."
The Warren push comes after Standard General last month offered some remedies to the regulators including waiving some certain contractual rights in an effort to appease regulators at the FCC and the Dept. of Justice. Under the offer, Standard General is giving cable companies and others the ability to negotiate retransmission consent agreements.
Warren in the letter argued that the behavioral remedies "are historically ineffective and should provide no comfort that these Wall Street firms will not engage in anticompetitive practices after the deal is completed."
Tegna ( NYSE: TGNA ) shares are looking to reverse much of their 1.2% gain on Wednesday following a Dealreporter item that a Senate hearing to confirm FCC nominee Gigi Sohn is likely several weeks away.
The Warren letter also comes after House Speaker Nancy Pelosi (D-CA) and Commerce Chairman Frank Pallone (D-NJ) sent a letter to the FCC to express their concerns about the proposed purchase of Tegna ( TGNA ) in October.
Late last month, the FCC asked for comments about Standard General's latest proposal in its planned takeover of the TV broadcaster Tegna ( TGNA ). Dealreporter also said last month that Standard General's offer was likely to resolve the FCC's and the Dept. of Justice's concerns about the deal.
Tegna ( TGNA ) in late February agreed to be sold to Standard General for $24/share in cash .
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Tegna falls as Sen. Elizabeth Warren urges FCC to block sale to Standard General