Newspaper chain Lee Enterprises rejects Alden takeover bid

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.

Related posts