A judge has cleared the way for newspaper publisher Lee Enterprises to use a voting system that will ensure two longtime directors are reelected 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.