DAVENPORT, Iowa (AP) — The Lee Enterprises newspaper chain has adopted a “poison-pill” plan to protect itself from a hostile takeover while it considers an unsolicited offer from hedge fund Alden Global Capital to buy Lee for $24 a share.
The plan would take effect if Alden gains control of more than 10% of Lee’s stock in the next year. The Davenport, Iowa-based company said the plan would allow its other shareholders to buy shares at a 50% discount at that point or possibly get free shares for every share they already own.
Alden said last week that it already owned more than 6% of Lee’s stock.
The plan Lee adopted Wednesday would make it more expensive for Alden to acquire a controlling stake.