Tegna jumps after report of Apollo deal interest

Shares of Tegna (TGNA) jumped on Monday morning following a report from late Friday that Apollo Global (APO) approached the company earlier this year about a potential takeover. APOLLO APPROACHED TEGNA THIS YEAR: Apollo Global Management approached TV station operator Tegna about a sale earlier this year, The Wall Street Journal's Cara Lombardo and Miriam Gottfried reported on Friday, citing people familiar with the matter. Apollo first contacted Tegna about a potential transaction at the beginning of the year, and later sent a formal letter to the board in February, according to the report, which adds that Apollo has been in "regular contact" despite so far being rebuffed by Tegna. Apollo would also consider other options, such as merging its stations with Tegna or selling them to the company, the people said. Tegna has a market value of around $3B, according to the Journal. Tegna said in a statement that its board of directors and management team are committed to creating value for all shareholders. MORE DETAILS: According to the people, Apollo pictures combining Tegna's assets with those of Cox Media. Apollo agreed to acquire a majority stake in Cox Media in February, and also signed a deal earlier this year to acquire 20 stations owned by privately-held Northwest Broadcasting. People familiar with the matter say Apollo expects both of these deals to close next month. WHAT'S NOTABLE: Apollo's interest in Tegna comes amid consolidation in the local TV market, including the pending deal between Nexstar (NXST) and Tribune Media (TRCO). ANALYST COMMENTARY: Wolfe Research upgraded Tegna to Outperform from Peer Perform on Monday, saying something has to happen to the shares given the company has no controlling shareholder and noted that its large market stations fit almost perfectly with Cox. PRICE ACTION: In early trading, shares of Tegna are up over 5% to $15.87. Reference Link