U.S. regional TV broadcaster Media General Inc rejected an increased takeover bid from Nexstar Broadcasting Inc, according to a source familiar with the matter.
Nexstar privately made an increased cash-and-stock offer last week of about $16.30 per Media General share based on Tuesday's close, the source said on Tuesday.
Media General rejected the bid and made a counter proposal of about $18.60 a share, the source added.
Media General, which itself is in a process to buy diversified media company Meredith Corp, had also rejected Nexstar's previous cash-and-stock offer of $14.50 a share.
A deal between the two would create the second-biggest local TV station operator in the United States.
Media General, Nexstar and Meredith could not be immediately reached for comment outside U.S. regular business hours.