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Hedge fund loses lawsuit in World-Herald owner, Lee Enterprises takeover fight

Lee Enterprises is based in Iowa and owns several Midwest newspapers
Berkshire Hathaway Newspapers
Posted at 12:18 PM, Feb 27, 2022
and last updated 2022-02-27 16:21:56-05

OMAHA, Neb. (AP) — A judge has cleared the way for newspaper publisher Lee Enterprises to use a voting system that will ensure two longtime directors are re-elected at next month’s annual meeting despite the objections of a hedge fund that is trying to buy the company.

The Davenport, Iowa-based publisher said the Delaware judge threw out Alden Global Capital’s latest lawsuit Friday.

The publisher of the St. Louis Post-Dispatch, Buffalo News, Lincoln Journal Star and dozens of other newspapers rejected Alden’s $141 million takeover offer in December because Lee said it “grossly undervalued” the company.

The New York-based hedge fund has a reputation for imposing severe cuts and layoffs at the more than 200 newspapers it owns.

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