ST. LOUIS — The board of directors at Lee Enterprises, which owns the Post-Dispatch, on Thursday rejected a New York hedge fund's unsolicited offer to buy the company.
Lee Chairman Mary Junck said Alden Global Capital's $24-per-share offer grossly undervalued Lee and failed to recognize the strength of its business, especially its fast-growing digital news platform.
"We remain confident in our ability to create significant value as an independent company," Junck said in a news release.
A representative for Alden did not immediately respond to a request for comment Thursday morning.
The rejection marks a significant setback for Alden, which is looking to make Lee the latest in a series of acquisitions intended to consolidate the newspaper industry.
Alden aimed for a speedy takeover after making its $141 million offer for Lee on Nov. 22. It noted that figure represented about a 30 percent premium, per share, over the previous day's market close, and said that with Lee's cooperation, it could have things wrapped up in "approximately four weeks."
But in the past three weeks, Lee shares have risen above $24, putting pressure on Alden to raise its offer.
Meanwhile, Lee's board voted to enact a "poison pill" plan that could dilute shares if Alden starts buying Lee stock. The board also rejected Alden's attempt to nominate three new board members, citing procedural issues. And newsroom unions began a campaign against the acquisition, noting Alden's reputation for steep cost-cuts in the name of efficiency.
Then, Wednesday afternoon, one of the company's largest shareholders weighed in against the offer, calling it "clearly insufficient and opportunistic."
Lee shares jumped $2.50, or 10%, to $27.45 in early trading Thursday.
