The disclosure in an unusually dense SEC filing led to a 19.2% pop today in the share price for the parent of the Hallmark Channel, taking it to a two-year high. The greeting card company already controls 90.3% of Crown Media. It says in the filing that a standstill agreement will expire at the end of 2013. As a result, Hallmark and its subsidiaries are “evaluating their investment.” Options include buying additional shares, merging, and leading a stock repurchase program. Meanwhile, Hallmark says it “may at any time reconsider and change [its] plans or proposals.” Crown’s stock price had been rising before the announcement: It’s +45.9% over the last 12 months. Even so, the company would be relatively cheap for Hallmark to buy. Crown had a market value of $892M based on today’s closing price.
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