Free Trial

Lee Enterprises tries to ward off hostile takeover by Alden

DAVENPORT, Iowa (AP) — The Lee Enterprises newspaper chain has adopted a “poison-pill” plan to protect itself from a hostile takeover while the company's board considers an unsolicited offer from hedge fund Alden Global Capital.

The shareholder rights plan would take effect if Alden gets control of more than 10% of Lee's stock any time in the next year. The Davenport, Iowa-based company said the plan would allow its other shareholders to buy shares at a 50% discount at that point or possibly get free shares for every share they already own.

New York-based Alden said last week that it already owed more than 6% of Lee's stock when it offered to buy the rest of the shares for $24 apiece, or about $141 million. The plan Lee adopted Wednesday would make it more expensive for Alden to acquire a controlling stake in the company.

Lee's Chairman Mary Junck said the so-called “poison-pill” plan will give the board and investors "the time needed to properly assess the acquisition proposal without undue pressure while also safeguarding shareholders’ opportunity to realize the long-term value of their investment in Lee.”

Lee owns the St. Louis Post-Dispatch, the Buffalo News and dozens of other newspapers including nearly every daily newspaper in Nebraska.

Alden has become one of the largest newspaper owners in the country through a series of acquisitions in recent years, including this year's purchase of the Tribune papers. Along the way, Alden has developed a reputation for intense cost cuts and layoffs.

Should You Invest $1,000 in Lee Enterprises Right Now?

Before you consider Lee Enterprises, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lee Enterprises wasn't on the list.

While Lee Enterprises currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

These 7 Stocks Will Be Magnificent in 2025 Cover

Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2025. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Lee Enterprises (LEE)
0.3197 of 5 stars
$6.410.7%N/A-0.88N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Cheap Growth Stocks Set to Explode This Summer
The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth
5 Stocks to BUY NOW in July 2025

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines