Hedge fund group sues Post-Dispatch publisher for rejecting takeover bid

Missouri

FILE – In this Nov. 10, 2009 photo, a man walks past a St. Louis Post-Dispatch newspaper box as the Gateway Arch is seen in the background in St. Louis. (AP Photo/Jeff Roberson, file)

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.

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.

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.

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