The Lee Enterprises newspaper chain has adopted a “poison-pill” plan to protect itself from hostile takeovers while it considers an unsolicited offer to buy Lee from hedge fund Alden Global Capital for $24 a share. .
Davenport, Iowa – The Lee Enterprises newspaper chain has adopted a “poison-pill” plan to protect itself from a hostile takeover while the company’s board considers an unsolicited offer from hedge fund Alden Global Capital.
The Shareholder Rights Plan will take effect if Alden acquires control of more than 10% of Lee’s stock at any time in the following year. Davenport, the Iowa-based company, said the plan would allow its other shareholders to buy shares at that time at a 50% discount or possibly receive free shares for every share they already own.
New York-based Alden said last week that it owes more than 6% of Lee’s stock after it offered to buy the remaining shares for $24, or about $141 million. The plan adopted by Lee on Wednesday would make it more expensive for Alden to acquire a controlling stake in the company.
Lee’s president, Mary Junk, said the so-called “poison-pill” plan would give the board and investors the time needed to “reasonably assess the takeover proposal without undue pressure, while providing an opportunity for shareholders to realize the long-term value of their investments.” Will also protect. In Lee.”
Lee owns dozens of other newspapers, including the St. Louis Post-Dispatch, Buffalo News, and nearly every daily newspaper in Nebraska.
Alden has become one of the largest newspaper owners in the country through a series of acquisitions in recent years, including this year’s purchase of Tribune Paper. Along the way, Alden has developed a reputation for intensive cost cutting and layoffs.