Emmis Shareholders Seek to Block Smulyan's Buyout
| RADIO ONLINE | Wednesday, July 14, 2010 | 2:37pm CT |
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According to SEC filings, Emmis preferred stockholders including Geoffrey Raynor's Texas-based Amalgamated Gadget and a group of eight other investors plan to vote against Smulyan's bid to take the company private. Collectively, these groups own more than one-third of preferred stock, more than enough to block Emmis from going private.
The eight groups, all of which have signed a "lock-up" agreement to vote shares together, include Third Point LLC, Double Diamond Partners, Zazove Aggressive Growth Fund, R2 Investments, DJD Group Group, the Radoff Family Foundation, Bradley L. Radoff and LKCM Private Discipline Master Fund.
Smulyan has offered $2.40 per share tender for all of the company's common stock as well as an offer to exchange existing shares of 6.25% convertible preferred stock for 12% notes that are due 2017.
