By William Turvill
Local news publisher Lee Enterprises has responded defensively to Alden Global Capital’s takeover proposal.
Following Alden’s unsolicited $142m offer on Monday, the board of Lee Enterprises today said it had enacted a shareholder rights plan.
Known to financiers as a “poison pill”, the move effectively blocks Alden from acquiring more than 10% of Lee’s shares while the company considers its offer. The plan expires in one year.
Lee’s chairman, Mary Junck, said the decision had been taken to “ensure our shareholders receive fair treatment, full transparency and protection in connection with Alden’s unsolicited proposal to acquire Lee.
“This rights plan will provide Lee’s board and our shareholders with the time needed to properly assess the acquisition proposal without undue pressure while also safeguarding shareholders’ opportunity to realize the long-term value of their investment in Lee.”
In adopting the rights plan, Lee’s board said it had “noted Alden’s track record of rapidly acquiring substantial control or ‘negative control’ positions in other public companies”.
Alden published a letter to Lee’s board announcing its takeover offer on Monday.
In the letter, Alden said an “affiliated entity of ours owns approximately 6%” of Lee already. This appears to have come as a surprise to Lee’s board, which today highlighted Alden’s “seemingly inconsistent disclosures on its Schedule 13Ds and Form 13Fs filed with the U.S. Securities and Exchange Commission (“SEC”) regarding its purported ownership of Lee’s shares”.
Source: Press release
Deal value: $142m
Country: US
Status: Official
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