Lee Enterprises Declines Appointments to Advice of Prospective Buyer Alden

Lee Enterprises Declines Appointments to Advice of Prospective Buyer Alden

Alden is looking to make Lee the latest in a series of acquisitions intended to consolidate the newspaper industry.

Lee Enterprises on Friday dismissed a planned purchaser’s endeavor to select three new board individuals one year from now, refering to procedural flaws in its filing. Davenport, Iowa-based Lee Enterprises said New York hedge fund Alden Global Capital’s errors included making the assignments through a third-party affiliate that didn’t possess Lee shares. “Alden neglected to meet the most basic and most important requirement of our director nomination procedure,” the organization said in a news release. Lee additionally noticed that the cutoff time for 2022 load up assignments has since passed, so Alden can’t attempt once more. An agent for Alden didn’t promptly react to a solicitation for comment.

The hedge fund has the reputation of significantly cutting costs in newsrooms that it acquires, including selling the newspaper’s real estate and laying off a significant percentage of newsroom staff. The newspaper business has been consolidating as it struggles with a digital transition and shrinking revenues, and financial firms like Alden have taken an increasingly prominent role as owners. Newsroom jobs dropped nearly in half from 2004 to 2018, according to Pew Research, and the pandemic has exacerbated those stresses.

Alden appeared hopeful for a speedy takeover after making its $141 million, or $24 per share, offer for Lee on Nov. 22. It noted that figure represented about a 30% premium over the previous day’s market close, and said that, with Lee’s cooperation, it could have things wrapped up in “approximately four weeks.”

But in the past two weeks, Lee shares have risen above $24, putting pressure on Alden to raise its offer. Lee’s board unanimously voted to enact a “poison pill” plan that could dilute shares if Alden starts buying without its consent. And newsroom unions have begun a campaign against the acquisition, noting Alden’s reputation for steep cost-cuts in the name of efficiency.

“They will take this proud company, built over decades of hard work, and leave it in ashes,” the unions wrote in a joint letter to Lee’s board.

Waterloo City Council member Jonathan Grieder on Thursday came out against the hedge fund’s proposed bid for the Courier’s owner, saying it would be a “real threat” to city government.

Grieder, who represents Ward 2, submitted a resolution to the Waterloo City Council to discuss during a work session before Monday’s meeting.

The resolution calls local media, “especially newspapers,” “necessary and vital conduits of information,” and notes that newsrooms everywhere “have been consolidated and cut in the name of profit while leaving citizens less informed and less engaged in local life.” “I’m just afraid as media becomes more consolidated,” Grieder said on Thursday. “No one’s perfect — The Courier’s not perfect — but I just think this local perspective is important to keep.”

Lee owns daily newspapers, digital products and over 350 weekly and specialty publications serving 77 markets in 26 states. Its newspapers include the St. Louis Post-Dispatch, The Buffalo News, Omaha World-Herald, The Lincoln Journal Star, The Times of Northwest Indiana and Tulsa World. Alden’s titles include the Chicago Tribune and the Baltimore Sun, which it acquired this summer in its takeover of Tribune Publishing.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Adani Wilmar will beat capital mkt with Rs 3,600 crore-IPO on Jan 27
Adani Wilmar will beat capital mkt with Rs 3,600 crore-IPO on Jan 27
The issue will be open for subscription by the public on January 27 and will close on January 31, Adani Enterprises said in a regulatory filing on Thursday. ...
COVID-19 tests sites closed, hospitals getting ready for winter
COVID-19 tests sites closed, hospitals getting ready for winter
According to Tami Frost, the Chief Nursing Officer, they have made accommodations for staff if they need to stay overnight. They are also providing meals for ...
The Fed may end up needing to actually sell some of its bonds
The Fed may end up needing to actually sell some of its bonds
The last time the Fed undertook QT, from 2017 to 2019, it chose to shrink its balance sheet by simply not replacing Treasuries and mortgage bonds as they ...
182 factoring companies for MSMEs currently, up from the previous seven
182 factoring companies for MSMEs currently, up from the previous seven
However, if the customer doesn’t honour the bills, the MSME may still be liable for repayment to the factors. The RBI has permitted all non-deposit taking ...
Santa Clara County supervisors consider mandatory mental health treatment for people with serious illnesses |  News
COVID-19 in Arkansas: State passes 100,000 active cases
Hutchinson discussed how the state is working on making at-home COVID-19 test available. He noted that 1.5 million tests have been received in Arkansas and ...
MicroStrategy plummets as the SEC refuses its Bitcoin accounting
MicroStrategy plummets as the SEC refuses its Bitcoin accounting
The enterprise software maker, which said in 2020 that buying and holding Bitcoin was one of its primary business strategies, used non-GAAP measures in its ...
Domestic auto components industry expected to see 15-17% revenue growth this fiscal year
Domestic auto components industry expected to see 15-17% revenue growth this fiscal year
A pick-up in economic activity augurs well for commercial vehicle sales and in addition, the scrappage policy and strict inspection of Pollution Under ...
Biocon's third quarter net profit increased by 18% to Rs 220 crore
Biocon’s third quarter net profit increased by 18% to Rs 220 crore
According to the report, revenue for the biosimilars vertical increased to Rs 981.4 crore from Rs 768.9 crore in the previous fiscal quarter, while revenue ...
Grupo Santamonica has entered the field of educational technology research
Grupo Santamonica has entered the field of educational technology research
If this situation continues, the plight of students pursuing higher education in India is in a state of going through more crisis than the schools,” Denny ...
ICICI Bank's third quarter net profit jumps 25% to Rs 6,194 cr;  NII increases 23%
ICICI Bank’s third quarter net profit jumps 25% to Rs 6,194 cr; NII increases 23%
Also, non-interest income of the lender increased by 25 per cent to Rs 4,899 crore, of which fee income rose by 19 per cent to Rs 4,291 crore. The net ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo