The battle over who is going to own DallasNews Corp.
and the Dallas Morning News — Hearst or Alden Global Capital — is not quite over.
MNG Enterprises, an Alden
Global Capital company, has increased its non-binding offer to $18.50 per share in cash, a dollar more than its previous bid.
“Our proposal now offers DallasNews shareholders $3.50
more than Hearst’s $15.00 offer, an approximately 23.3% premium,” MNG writes in a letter to the DallasNews Corp. board of directors.
MNG adds, “We have elected to
increase our price again in recognition of the fact that the transaction you are planning with Hearst woefully undervalues DallasNews. We urge you to fulfill your fiduciary
obligations to the shareholders of DallasNews an
immediately open a constructive dialogue with us.”
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However, DallasNews Corporation has scheduled a
shareholder vote for Sept. 23 to finalize its proposed merger with Hearst. The company has rejected what it calls an “illusory” offer from MNG, and filed
a proxy statement urging investors to vote in favor of Hearst’s all-cash offer of $15, which had been raised from $14 per share.
Robert W. Decherd, the controlling shareholder, has been adamant in his refusal to sell to MNG.
The shareholder letter from DallasNews Corp.
accuses Alden of having “a well-documented history of cost-cutting, staff reductions, and reduced coverage of local communities.”
However, the new letter from MNG states,
“Each of our proposals has been substantially superior to Hearst’s and has offered to address Mr. Decherd’s concerns, which we firmly believe are unwarranted.”