McCaw Bid Too Low, Lin Says; Mulls Options

Lin Broadcasting, declaring that McCaw Cellular Communications failed to meet a Monday deadline for reaching a friendly merger agreement, said Monday that it intends to pursue alternatives to the McCaw proposal.

“Lin has given McCaw every reasonable opportunity to enter into a merger agreement” at the price of $6.1 billion, or $127.50 a share, Lin Chairman and Chief Executive Donald A. Pels said in a prepared statement. “McCaw’s continuing inadequate $110-a-share tender offer is clearly not in the best interest of Lin stockholders.”

Lin, the New York-based cellular telephone and broadcasting concern that holds a 35% stake in Los Angeles Cellular Telephone, has said it is considering spinning off its seven television stations into a separate company or a financial restructuring that may include a special dividend to shareholders.

McCaw on Monday insisted that its $110-a-share offer is “full and fair.”

Kirkland, Wash.-based McCaw, the nation’s largest independent cellular telephone company, has been actively pursuing Lin since early June when it made a $120-a-share, or $5.8-billion, bid for the 90% of Lin it doesn’t own. Lin’s board rejected that offer.

McCaw later agreed to discuss a $127.50 cash-and-stock offer but abruptly suspended talks July 21.