• by Ray Schultz , 6 hours ago

The board of DallasNews Corp., owner of The Dallas Morning News, has rejected the offer of $20 per share that it received from Alden Global Capital's MNG Enterprises Inc. 

The “final” Hearst offer is $16.50 per share. 

The DallasNews board “reiterates our support for the Hearst Merger and the significant and certain all-cash premium it offers to shareholders,” says John A. Beckert, chairman of the board. “We encourage all DallasNews shareholders to accept this best and final offer from Hearst and vote FOR this value creating proposal. Otherwise, DallasNews will remain a public company and its shares may return to their pre-announcement trading value of approximately $4 per share.” 

DallasNews entered into a definitive merger agreement with Hearst on July 9 for $14 per share. 

The latest non-binding bid from MNG was sent yesterday.

The board also received a communication from its largest shareholder.

“I have of course seen Media News Group's latest letter to the Board increasing its conditional offer to $20 per share,” adds Robert W. Decherd. “Please know that I remain totally committed to the Hearst Merger. There is no circumstance under which I will change my mind, now or in the future.”  

Decherd adds: “It is important to state that I have long since ceased to view my holdings in DallasNews Corporation as a financial asset. My sole objective is sustaining the journalistic quality and civic responsibility of The Dallas Morning News."