Tegna ( NYSE: TGNA ) plummeted 23% after the Federal Communications Commission on Friday said that it's sending the Standard General sale to an administrative law judg e, "effectively killing the deal," according to Benchmark.
"While perhaps not as blunt or pointed in the wording as we have seen in the past, it seems evident upon reading between the lines of the order that the FCC both believes that something illicit is going on with the deal structure and that Standard General effectively lied in their responses, bringing up the non-negotiable topic of candor," Benchmark analyst Daniel Kurnos, who has a buy rating and $24 price target on Tegna, wrote in a note on Monday.
Kurnos said that he saw the potential for the stock to fall below $17 a share in a deal break.
The FCC on Friday said the hearing designation order focuses on "material concerns" related to how the transaction could "artificially raise prices for consumers and result in job losses," according a r elease from the FCC 's Media Burea.
Tegna ( TGNA ) said in its 4Q results on Monday that it's evaluating its options.
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Tegna plunges as sale to standard General `effectively killed' with ALJ hearing