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Outdoor Channel's board determined Kroenke Sports & Ent's all-cash offer of $8.75/share is superior to its Nov merger agreement with Sportsman Channel parent InterMedia. If Outdoor goes with the Kroenke bid, it's on the hook for a $6.5mln break-up fee to be paid to InterMedia. Outdoor has notified InterMedia of its intention to terminate the deal. InterMedia has until Tues to propose changes to the merger deal. If Outdoor still feels Kroenke, which owns the Denver Nuggets and CO Avalanche, has the better offer, it expects to terminate the deal and pay the break-up fee. In citing the positives of the Kroenke deal, Outdoor said the proposal is not subject to any financing contingency, does not limit Outdoor Channel's recovery to a reverse breakup fee in the event KSE fails to finance the transaction and includes a break-up fee equal to $1mln (vs $6.5mln) that becomes payable by Outdoor Channel in the event that the merger agreement is terminated under certain circumstances. In addition, Stanley Kroenke has agreed to personally guarantee the obligations of KSE if the KSE merger agreement is executed. InterMedia, which was founded by cable vet Leo Hindery in '88, had offered $8/share in a cash and stock deal valued at about $208mln.

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