Lee Enterprises asks investors to help fight off hedge fund
ABC News
Newspaper publisher Lee Enterprises is asking its shareholders to help it fight off a hostile takeover offer from “vulture hedge fund” Alden Global Capital
OMAHA, Neb. -- Newspaper publisher Lee Enterprises is asking its shareholders to help it fight off a hostile takeover offer from “vulture hedge fund” Alden Global Capital.
The publisher of the St. Louis Post-Dispatch, the Buffalo News and dozens of other newspapers, including nearly every daily newspaper in Nebraska, sent a letter to shareholders Monday asking them to support its board nominees in the dispute with Alden. Lee, which is based in Davenport, Iowa, already rejected Alden's $24 per share offer because it said the $141 million bid grossly undervalues Lee, but the two sides are locked in a court battle over whether Alden will be able to nominate its own directors.
“A ‘Vulture Hedge Fund’ is seeking to acquire Lee at a steep discount. Don’t let it take value that belongs to you," Lee said in its letter to shareholders.
Lee also told shareholders that they should have faith in the company's current strategy to shift its publications over to online delivery because it has seen its digital-only subscriptions grow 65% over the past year to 402,000 at all of its newspapers.
