Alden Capital’s attempted to takeover Lee Enterprises has stalled.
Lee Enterprises Inc. — one of few sizeable American newspaper chains not owned by hedge fund Alden Global Capital LLC — has adopted a limited duration shareholder rights plan that would prevent Alden from acquiring more than 10% of the company, as Lee Enterprises considers Alden’s hostile bid for the company.
The rights plan, also known as a ‘poison pill,’ is effective immediately and will remain effective for one year, expiring on Nov. 23, 2022, Lee Enterprises said in a statement Wednesday.
According to the statement, the rights plan was adopted in response to “an unsolicited and binding proposal” to acquire Lee Enterprises.
A more detailed explanation at Business Wire:
The Rights Plan is intended to enable the Company’s shareholders to realize the long-term value of their investment, ensure that all shareholders receive fair and equal treatment in the event of any proposed takeover of the Company, and to guard against tactics to gain control of the Company without paying all shareholders an appropriate premium for that control. The Rights Plan applies equally to all current and future shareholders and is not intended to deter offers or preclude the Lee Board from considering offers that are fair and otherwise in the best interest of the Company’s shareholders.
“Consistent with its fiduciary duties, Lee’s Board has taken this action to ensure our shareholders receive fair treatment, full transparency and protection in connection with Alden’s unsolicited proposal to acquire Lee,” said Lee Chairman Mary Junck.
