March 18 (Bloomberg) -- Outdoor Channel Holdings Inc., the hunting and fishing cable-TV network that agreed to be bought by Kroenke Sports & Entertainment LLC for about $227 million, is being sued by an investor who claims the offer is too low.
Outdoor earlier accepted an $8-a-share offer in cash or stock from InterMedia Outdoors Holdings LLC, then rejected the offer in favor of Kroenke’s all-cash $8.75-a-share bid, costing the company a $6.5 million breakup fee, the Outdoor stockholder, Roberta Feinstein, said in a Delaware Chancery Court complaint filed today in Wilmington.
The price increase “could have been significantly higher had the board not hastily agreed to the inadequate offer by InterMedia,” and Temecula, California-based Outdoor should be auctioned, Feinstein said in court papers.
Closely held Kroenke, based in Denver, owns and operates the Denver Nuggets of the National Basketball Association and the Colorado Avalanche of the National Hockey League.
Outdoor runs shows on shooting, country music, off-road motor sports, gold-prospecting, horseracing, rodeos, softball and soccer, as well as hunting and fishing.
Joe LoBello, a spokesman for Outdoor, didn’t immediately return voice and e-mail messages seeking comment on the lawsuit.
The case is Feinstein v. Outdoor Channel Holdings Inc., CA8412, Delaware Chancery Court (Wilmington).