DallasNews Board Rejects Alden Global Capital's Inadequate Bid
DallasNews Corporation's Board Responds to Acquisition Proposal
DALLAS, in a significant move, DallasNews Corporation (NASDAQ: DALN) recently announced the rejection of a revised acquisition proposal from MNG Enterprises, Inc., an affiliate of Alden Global Capital. In a statement, the Board of Directors affirmed that the offer to purchase shares at $18.50 each does not surpass their existing merger agreement with Hearst.
The Board’s decision emphasizes its deliberation and reliance on legal and financial advisors. The previous agreement with Hearst, which initially announced a cash payment of $14.00 per share, had seen an increase to $15.00 per share after shareholder feedback and negotiations. This adjustment reflects a remarkable 242% premium over pre-announcement share prices.
Strategic Insights Into the Board’s Decision
With fiduciary duty as a guiding principle, the Board performed a detailed assessment of the Alden Proposal. Despite several evaluations, they concluded that it did not constitute a better option for shareholders. Engagement with key stakeholders, particularly Robert W. Decherd, who holds a substantial portion of the voting power, reaffirmed the Board's stance. Mr. Decherd indicated his unwavering support for the Hearst merger, thus influencing the Board's collective decision.
Shareholder Value and Future Prospects
This rejection signifies DallasNews's commitment to maximizing shareholder value, a principle the Board takes seriously. By prioritizing the Hearst merger deal, DallasNews aims to provide a stable and promising future, which they believe could foster better growth and investment opportunities for shareholders.
About DallasNews Corporation
DallasNews Corporation stands as a pillar of the media landscape in Dallas, holding the reputable The Dallas Morning News and the innovative marketing agency Medium Giant. Known for its profound journalistic integrity, The Dallas Morning News has achieved national acknowledgment, including multiple Pulitzer Prizes, highlighting its commitment to delivering quality news that resonates with the community.
Medium Giant's Contribution to Marketing Excellence
On the other hand, Medium Giant has carved out a niche in the marketing sector, receiving accolades for its creative strategies and campaigns. The agency's recent awards, including the AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year, signify its robust performance in the competitive landscape.
Contact Information for Shareholders and Media
To engage with investors, DallasNews has partnered with D.F. King & Co., Inc. They can be reached at 1-866-416-0577 or via email at DALN@dfking.com. For broader inquiries, Okapi Partners LLC offers their services toll-free at 1-844-343-2621 or via email at Info@okapipartners.com.
Moreover, for media questions, Gagnier Communications is available at DallasNews@gagnierfc.com, ensuring that all inquiries are handled effectively.
Frequently Asked Questions
What is the recent proposal from Alden Global Capital?
The proposal from Alden Global Capital was to acquire DallasNews at $18.50 per share, but it has been rejected by the Board.
What is the current agreed price for the Hearst merger?
The Hearst merger now stands at a purchase price of $15.00 per share, revised from an initial agreement of $14.00 per share.
How did Robert W. Decherd influence the Board's decision?
Robert W. Decherd, controlling significant voting power, expressed his firm support for the Hearst agreement, reassuring the Board's decision to reject Alden's proposal.
What recognition has The Dallas Morning News received?
The Dallas Morning News has garnered nine Pulitzer Prizes for its commitment to outstanding journalism and community reporting.
Who can shareholders contact for more information?
Shareholders can reach D.F. King & Co. at 1-866-416-0577 or via email at DALN@dfking.com for inquiries regarding their holdings.
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