Emmis Vote Delayed, Preferred Stock Offer Extended

RADIO ONLINE | Tuesday, August 3, 2010 | 11:37pm CT

A planned shareholder vote for Tuesday to consider CEO Jeff Smulyan's bid to take the company private was postponed until Friday after it did not receive the necessary votes to reach a quorum. The Indiana Business Journal reports that a revised buyout could be in the works for more than the current $2.40 per share offer. The company's stock closed at $1.60 on Tuesday.

In a release, Emmis said it would extend its offer to issue 12% PIK senior subordinated notes due 2017 in exchange for Emmis' 6.25% series A preferred stock until August 6. The exchange offer was originally scheduled to expire Tuesday.

Meanwhile, CEO Jeff Smulyan's JS Acquisition is extending its tender offer to purchase all of Emmis' outstanding shares of class A common stock for $2.40 per share in cash until August 6 from August 3.

Emmis said the offers are being extended because Emmis, JS Parent, JS Acquisition, and Smulyan have been unable to reach an agreement in negotiations with a group of preferred stock holders that own 38.3% of the outstanding shares.