OMAHA, Neb. (AP) — A judge has cleared the way for newspaper publisher Lee Enterprises to use a voting system that will ensure two longtime directors are reelected at next month’s annual meeting despite the objections of a hedge fund that is trying to buy the company.
The Davenport, Iowa-based publisher — and The Courier’s corporate patent — said the Delaware judge threw out Alden Global Capital’s latest lawsuit Friday. Earlier this month, a judge also blocked Alden’s effort to nominate its own directors at Lee’s March 10 annual meeting.
“This is now the second court ruling in less than two weeks rejecting Alden’s desperate efforts to destabilize Lee and push its grossly undervalued proposal to purchase the company,” Lee said in a statement.
Alden didn’t immediately comment on the ruling.
The publisher of the St. Louis Post-Dispatch, Buffalo News, Lincoln Journal Star and dozens of other newspapers rejected Alden’s $141 million takeover offer in December. The New York-based hedge fund is already one of the nation’s largest newspaper owners, but it has a reputation for imposing severe cuts and layoffs at the publications it owns.
Alden objected to Lee’s decision to use a plurality standard for the director vote because it will essentially guarantee the reelection of Lee’s chairman and its lead independent director. As long as the directors get at least one “yes” vote, that is more than any other candidate could get because they are running unopposed. Alden wanted the directors to have to win the majority of the votes cast to keep their seats.
Alden, which owns 6.3% of Lee’s stock, says change is needed because the company has delivered disappointing results since buying all of Berkshire Hathaway’s newspapers in 2020. But Lee has said it is making good progress in growing online ad revenue and digital subscriptions.
Lee’s board has received support from two other hedge funds that hold stakes in the publisher because they have said Lee is worth significantly more than the $24 per share Alden has offered.
WSR west elementary south view
An architect’s depiction of the planned west elementary school in Waverly, looking at the main entryway on the south end of the building.
WSR west elementary media center view
An architect’s depiction of the planned west elementary school in Waverly, looking towards the media center.
WSR NE elementary south view
An architect’s depiction of the planned northeast elementary school in Waverly, looking at the main entryway on the south end of the building.
WSR NE elementary hill view
An architect’s depiction of the planned northeast elementary school in Waverly, looking at it from a hill near the building.
WSR NE elementary media center view
An architect’s depiction of the planned northeast elementary school, looking at the building’s media center.
WSR west elementary commons
The cafeteria and commons area of the planned west elementary school in Waverly, as depicted in an architect’s drawing.
WSR west elementary lower level studio 2
A classroom on the lower level of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elementary lower level studio
A classroom on the lower level of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elementary main floor corridor
The corridor on the main floor of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elementary media center
The media center on the lower level of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elemtentary main level studio 2
A classroom on the main level of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elementary main level studio
A classroom on the main level of the planned west elementary school in Waverly, as depicted by an architect.
WSR west elementary commons
The cafeteria and commons area of the planned northeast elementary school in Waverly, as depicted in an architect’s drawing.
WSR NE elementary lower level studio 2
A classroom on the lower level of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR NE elementary lower level studio
A classroom on the lower level of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR NE elementary main corridor
The corridor on the main floor of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR NE elementary media center
The media center on the lower level of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR NE elementary main level studio 2
A classroom on the main level of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR NE elementary main level studio
A classroom on the main level of the planned northeast elementary school in Waverly, as depicted by an architect.
WSR west elementary main level plan
Plans for the main level of the west elementary school in Waverly.
WSR west elementary lower level plan
Plans for the lower level of the west elementary school in Waverly.
WSR NE elementary lower level plan
Plans for the lower level of the northeast elementary school in Waverly.
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