Running Lee Enterprises thread

Lee and unions arguing the same side. Pretty sure somebody in the Quad Cities had to squirm.

Lee Enterprises fired another volley Friday morning in its attempt to fend off a hostile takeover bid by hedge fund Alden Global Capital.

Specifically, it rejected Alden’s attempt to nominate a slate of three board directors, filed a week ago, right on the deadline for shareholders to propose candidates. Lee said the nominations, which it had earlier described as “purported,” did not follow the company’s bylaws and would not be honored.

This is one more signal that Lee, publisher of 77 dailies including the St. Louis Post-Dispatch and The Buffalo News, is digging in for a protracted fight. Earlier Lee put in place a shareholder’s rights plan, a so-called poison pill defense that aims to block Alden from increasing its ownership of shares beyond 10% over the next 12 months.

Alden and related companies now own a little over 6% of Lee’s stock.

Lee management (and union chapters at its papers) have argued that the company is making progress on its own and will best serve its communities by continuing on that course and keeping out Alden, which is notorious for its cost-cutting at the many newspapers it now controls.​

Lee says no to Alden Global Capital’s attempt to nominate directors - Poynter

 

Harris Kupperman of Praetorian Capital, Lee’s second-largest shareholder:

Let me be blunt. I simply do not understand what needs to be evaluated here. Alden’s proposed purchase price is clearly insufficient and opportunistic, grossly undervaluing the business. Furthermore, their proposal comes precisely as the digital business transformation gains momentum, dramatically unlocking value for long-suffering shareholders. In order to save the company a fortune in investment banker and advisory fees, I want to state in the clearest possible way that I emphatically refuse to tender any shares at $24, nor will I tender any shares at a price even remotely close to today’s price. Additionally, I intend to retain legal counsel and protect my investor’s rights should the Board agree to sell the company at a price that I deem to be insufficient. …

In summary, I recognize that the Board of LEE have a fiduciary responsibility to go through the motions, hire bankers and ensure that the company doesn’t get sued. However, the time has now come to reject this inadequate offer so management can re-focus their attention on growing the digital business.​

https://investors.lee.net/node/17136/html
Praetorian Capital Management LLC Comments on Lee Enterprises, Inc. and the Takeover Proposal It Received From Alden Global Capital, LLC

I thought this paragraph was interesting:

Lest you think that I am delusional to think the shares are worth many times today’s price, I find it fascinating that J. Carlo Cannell, the Managing Member of Cannell Capital LLC, the Company’s largest shareholder pegs the value of LEE at $205 per share in the 13D issued on August 31, 2021, then uses 3 pages to explain why he believes the shares are worth $250 per share in the attached “Cannell Capital Investment Thesis on Lee Enterprises, Inc.” You now have your two largest shareholders, representing approximately 15.51% of the company explicitly telling you that the Alden offer is light by roughly a zero.​

 

He is delusional. But I admire the spirit.

 

Alden voted down.

https://investors.lee.net/news-rele...ard-directors-unanimously-rejects-unsolicited

 

Better offer coming? Alden Global Capital Sues Lee Enterprises, But Signals A Better Offer Might Come

 

A better offer has to come, because Lee’s just shy of $38 per share as I write.

Meanwhile, here comes Alden’s return run. It’s trying to remove Mary Junck and Herb Moloney, on the grounds that they’re old and are standing in Alden’s way.

I feel nauseous. I have to root for Mary.

Alden’s attempted takeover of Lee Enterprises heats up - Poynter

 

I'm told Fredericksburg axed its Executive Editor this week, too. .... and his replacement as newsroom chief was told she was the replacement at the all-hands meeting telling the staff the EE had been laid off.

If you're still in newspapers and you're not working on your exit strategy ...

 

LOL "shocked."

Are you really shocked?

 

Declining industries tend to contract through mergers. This is certainly true of the newspaper industry. Lee needs to figure out a strategy where they can continue to grow or they will be eaten up.

As far as I know Alden is the only active buyer int he market now. Gannett does not seem to be expanding since they merged with Gatehouse and the hedge fund that now controls McClatchy is not buying. So taht leaves Alden as the only active buyer.

So Lee needs to get busy and get bigger.

 

As I said many times while working in that chain for more than three decades, fuck Lee Enterprises.