Gannett’s board has rejected an unsolicited proposal to be
bought by media company MNG Enterprises, known as Digital First Media, Gannett said Monday. The board’s rejection was
unanimous.
“After
careful review and consideration, conducted in consultation with its financial
and legal advisers, the Gannett board concluded that MNG’s unsolicited proposal
undervalues Gannett and is not in the best interests of Gannett and its
shareholders,” the company said in statement. “In addition, Gannett does not
believe MNG’s proposal is credible.”
MNG on Jan.
14 offered to buy Gannett for $12 a share in cash, which at the time represented
a 23 percent premium over its most recent closing price of $9.75 a share.
“As a
public company, Gannett’s board would engage with any party that makes a bona
fide, credible proposal that appropriately values the company and is capable of
being closed. MNG’s proposal fails that test,” says a release from Gannett.
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