Lee Rejects Hedge Fund Offer
Two weeks after a New York based hedge fund offered to buy it, Lee Enterprises has said "no thanks." Thursday the board of directors of the Quad Cities based media company unanimously rejected the offer from Alden Global Capital.
Alden has offered 24 dollars per share in cash.
In a press release, Lee says 24 dollars "grossly undervalues" the company and is not in its best interest or the best interests of its stockholders. As of late Thursday morning, shares were trading at 28 dollars.
Also Thursday Lee reported 4th quarter and year-end results. Without the benefit of last year's acquisition of Berkshire Hathaway Media Group and The Buffalo News, operating revenue for the year fell three per cent. Subscription revenue rose one per cent, but advertising revenue dropped six per cent. Total digital revenue, however, rose 34 per cent.
Lee Enterprises publishes daily newspapers, digital products, and weekly and specialty publications serving 77 markets in 26 states. Its major markets include St. Louis, Buffalo, Omaha, Lincoln, Madison, and the Quad Cities.