OMAHA, Neb. (AP) — Nearly a week after Lee Enterprises rejected Alden Global Capital’s attempt to buy the newspaper publisher, the hedge fund responded Wednesday with a lawsuit accusing Lee’s board of improperly denying shareholders the chance to have a say on the offer.
The Davenport, Iowa-based Lee rejected Alden’s offer to buy the company for $24 a share, or roughly $141 million, last Thursday because the company’s board decided the offer “grossly undervalued” the company.
Lee Enterprises closed at $40 a share on Wednesday.
But Alden argued in its lawsuit that Lee shouldn’t have rejected its offer and rebuffed its attempt to nominate three directors without even talking to the hedge fund.
Lee officials didn't immediately respond Wednesday to questions about the lawsuit.