Lee Enterprises fought off Alden Global Capital, but now faces pressure from hedge fund Cannell Capital - Entrepreneur Generations

"Newspaper publisher Lee Enterprises is facing renewed pressure from a hedge fund to speed up its transition to digital publishing and consider adding new digital-savvy leaders to its board after successfully fighting off a hostile takeover from a different hedge fund," Josh Funk reports for The Associated Press. "Lee’s largest shareholder, Cannell Capital, this week disclosed buying nearly 20,000 more of the company’s shares, giving it a 9.1% stake. The fund’s head, Carlo Cannell, said he thinks Lee needs new board members and executives with experience running a digital publishing business."

Cannell now has a 9.1 percent stake in Lee after recently buying nearly 20,000 more shares. The fund's chief, Carlo Cannell, said he had some, but "not a lot" of confidence in Lee's management. Cannell Capital and another hedge fund that owns a large stake in Lee, Praetorian Capital, also questioned the amount Lee spent on advisors as it was fending off a $24 per share takeover offer from another hedge fund, Alden Global Capital. But the investor who leads Praetorian, Harris Kupperman, has indicated that he is more comfortable with the company’s current direction," Funk reports. "Cannell Capital has been prodding Lee to make changes for several years. That includes running a 2019 campaign encouraging shareholders to vote against three board members, including Lee Chairman Mary Junck, and announcing last September that it planned to vote against all incumbent Lee board members."

Tim Franklin, senior associate dean of Northwestern University’s Medill journalism school and the former president of the Poynter Institute said Lee's troubles with hedge funds won't likely be over any time soon. "He noted hedge funds aren’t known for their patience in waiting for companies to grow their stock prices or profit margins," Funk reports. But many news organizations will see market turbulence as they make the transition from print to digital, Franklin said.

from The Rural Blog https://ift.tt/oryjAtE Lee Enterprises fought off Alden Global Capital, but now faces pressure from hedge fund Cannell Capital - Entrepreneur Generations

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