Omaha, Nebraska (AP) —A judge clarified how the newspaper Lee Enterprise used the voting system. society.
A Davenport-based publisher in Iowa said Judge Delaware dismissed Alden Global Capital’s latest proceedings on Friday. Earlier this month, the judge also blocked Alden’s efforts to appoint his own director at Lee’s March 10 annual meeting.
In a statement, Lee said, “This is Alden’s desperate effort to destabilize Lee and push forward with a highly undervalued proposal to buy the company, the second time within two weeks. It’s a court decision. “
Alden did not immediately comment on the decision.
Publishers of St. Louis Post-Dispatch, Buffalo News, Lincoln Journal Star and dozens of other newspapers rejected Alden’s $ 141 million takeover offer in December. The New York-based hedge fund, already one of the largest newspaper owners in the country, has a reputation for imposing significant reductions and layoffs on its publications.
Alden opposed Lee’s decision to use multiple criteria for voting of directors to essentially guarantee the reelection of Lee’s chairman and his chief independent director. As long as the board has at least one “yes” vote, it’s more than you can get because you’re doing it without any other candidate’s opposition. Alden wanted the board to win a majority of the votes cast to maintain its seat.
Alden, which owns a 6.3% stake in Lee, says it needs to be changed because the company has had disappointing results since it bought all Berkshire Hathaway newspapers in 2020. However, Lee says online advertising revenue and digital subscriptions are growing steadily.
Lee’s board of directors said it was far more valuable than Alden’s $ 24 per share, and is backed by two other hedge funds that invest in publishers.
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Hedge fund loses proceedings in Lee Enterprise takeover | Job
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