Newspaper writer Lee Enterprises has rejected a takeover provide from the Alden International Capital hedge fund that is among the largest newspaper homeowners within the nation with a popularity for intense price cuts and layoffs.
Lee stated Thursday that its board unanimously rejected Alden’s provide to purchase the corporate for $24 per share or about $141 million as a result of it is not in one of the best pursuits of shareholders. Additionally Thursday, Lee reported a $5.3 million fiscal fourth-quarter revenue this yr, rebounding from a $1.3 million loss a yr in the past, because the variety of digital-only subscribers on the firm grew 65% to 402,000.
“The Alden proposal grossly undervalues Lee and fails to acknowledge the energy of our enterprise as we speak, because the fastest-growing digital subscription platform in native media, and our compelling future prospects,” Lee Chairman Mary Junck stated.
When it made its provide final month, New York-based Alden stated it already owned greater than 6% of Lee’s inventory. Alden did not instantly reply to Lee Thursday morning.
After Alden made its unsolicited bid, Lee adopted a “poison-pill” plan that may make it costlier for Alden to purchase up Lee’s shares as soon as it owns greater than 10% of the corporate. Lee additionally rebuffed Alden’s try to nominate three new administrators to the corporate’s board.
At that time, the shareholder rights plan that the Davenport, Iowa-based firm adopted would enable its different shareholders to purchase shares at a 50% low cost at that time or probably get free shares for each share they already personal.
Lee owns the St. Louis Publish-Dispatch, the Buffalo Information and dozens of different newspapers together with practically each day by day newspaper in Nebraska.
Alden has scooped up newspapers throughout the nation via a collection of acquisitions in recent times, together with the acquisition of Tribune Publishing’s papers earlier this yr. Alden’s MediaNews Group unit owns dozens of papers, together with The Detroit Information.
Lee’s inventory jumped 12% to $28 a share Thursday morning.