Tegna ( NYSE: TGNA ) fell 1.9% on some speculation that Federal Communications Commission Chairwoman Jessica Rosenworcel could possibly look to veto the the company's sale to Standard General.
Rosenworcel may have ability to "pocket veto" the Tegna deal after gaining "political cover" from House Speaker Nancy Pelosi (D-CA,) according to traders, who cited a Capitol Forum piece that circulated earlier Monday. Rosenworcel could decide to not call a vote on the deal.
Pelosi and Commerce Chairman Frank Pallone (D-NJ) sent a letter Thursday to the Federal Communications Commission to express their concerns about the proposed purchase of Tegna.
Standard General told Seeking Alpha in a statement that “the transaction remains on track to close in the second half of 2022."
Earlier this month the FCC disclosed it's asking for further information in regards to the deal. The FCC requested the parties respond to the agency's request no later than this Thursday.
Tegna ( TGNA ) in late February agreed to be sold to Standard General and Apollo Global ( APO ) for $24/share in cash .
Standard General on Thursday issued a statement following the Pelosi letter.
“Standard General’s proposed acquisition of TEGNA will yield significant public interest benefits without any countervailing public interest harms, including creating the largest minority-owned and female-led broadcast station group in U.S. history," Standard General said in the statement. "We were therefore disappointed to see the FCC petitioners enlist the involvement of Speaker Pelosi and Congressman Pallone by misleading them with the same false statements they have been making to the FCC."
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Tegna ticks down on speculation FCC Chairwoman could veto Standard General deal