Lee Enterprises directors reelected despite hedge fund fight
Lee Enterprises Directors Reelected Amid Hedge Fund Fight:
Three directors of newspaper publisher Lee Enterprises "were reelected Thursday over the objections" of hedge fund Alden Global Capital, which "has been trying to buy the company since last fall," according to Josh Funk and Margery A. Beck of the Associated Press. Lee (which owns such publications as the St. Louis Post-Dispatch, the Missoulian and the Wisconsin State Journal) "said its chairman, CEO and lead independent director were all reelected as expected at the Davenport, Iowa-based company’s annual meeting, with each receiving support from more than 70% of the votes cast." Although Alden "had urged shareholders to vote against Chairman Mary Junck and longtime director Herbert Moloney after a judge blocked its effort to nominate its own directors, [...] the rules of the election had made 'no' votes symbolic," the reporters added. Alden -- which owns the Chicago Tribune, the New York Daily News (through its Daily News Enterprises subsidiary), The Denver Post, the St. Paul Pioneer Press, the Boston Herald, The Mercury News of San Jose, the East Bay Times, The Orange County Register and the Orlando Sentinel -- "probably won’t abandon its effort to buy Lee after this latest setback, but it wasn’t immediately clear what the New York-based hedge fund might try next," according to Funk and Beck. The directors "were ensured they would be reelected because Lee decided to use a plurality standard in the elections," ensuring that they only "had to get one 'yes' vote to get reelected because that is more than any other candidate could receive because the directors were running unopposed." In a statement to shareholders prior to the vote, the The NewsGuild–Communications Workers of America union (which represents journalists at several Lee publications) condemned Alden's efforts: "We believe that Alden Global Capital has done more harm to the news industry than any single factor, including the online platforms. Within a few years of acquiring a news organization, Alden quickly hollows it out, taking a liquidation approach of selling off historic offices, shutting down printing plants and slashing staff, while hiking subscription prices."