DallasNews Corporation's Board of Directors rejected an unsolicited, non-binding proposal from MNG Enterprises, an affiliate of Alden Global Capital, to acquire the Company for $16.50 per share in cash. The Board, in consultation with its advisors, determined that the Alden Proposal did not constitute a 'Superior Proposal' under the existing merger agreement with Hearst.
Robert W. Decherd, who controls over 96% of the voting power of Series B common stock and over 50% of the combined voting power, publicly confirmed his intent to honor his voting agreement with Hearst and stated he would not support a sale to Alden. Without Mr. Decherd's support, the Alden Proposal cannot be consummated.
Concurrently, DallasNews and Hearst amended their merger agreement, increasing the per share purchase price to be paid by Hearst from $14.00 to $15.00 in cash. The Board reaffirmed its recommendation for the amended Hearst Merger Agreement. Additionally, the Board adopted a shareholder rights plan, effective immediately, with a 10% trigger for Series A common stock, intended to deter Alden's efforts to acquire a significant stake and ensure shareholders realize the benefits of the Hearst transaction.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.