Gannett board seats target of Digital First Media proxy fight: Report
Digital First Media has launched a proxy fight to take control of Gannett’s board of directors, days after the USA Today publisher rejected its $1.36 billion hostile takeover bid.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GCI | GANNETT CO. INC. | 4.97 | -0.13 | -2.55% |
The company, also known as MNG Enterprises, plans to nominate six candidates to Gannett’s board on Thursday, the Wall Street Journal reported, citing sources familiar with the matter. Digital First will ask shareholders to elect the candidates to replace sitting members at a meeting in the spring, including Heath Freeman, who co-founded hedge fund Alden Global Capital, which owns the newspaper company.
Digital First Media owns a 7.5 percent stake in Gannett and is one of its largest shareholders. Gannett’s stable of newspapers includes USA Today, the Indianapolis Star and the Courier-Journal, while Digital First Media owns the Denver Post, the Boston Herald, the San Jose Mercury News and other publications.
Gannett’s board of directors unanimously rejected Digital First Media’s unsolicited offer of $12 per share earlier this week, saying that the deal undervalued the company. Gannett also expressed doubt about Digital First Media’s ability to close its proposed transaction.
“It appears that MNG does not have a realistic plan to acquire Gannett,” the company said in a statement at the time.
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The battles comes as newspapers across the country contend with layoffs amid declining readerships and advertising revenue amid a rising shift to digital. Gannett announced another round of job cuts at several newspapers last month.