Emmis Postpones Shareholders Vote Until August 13

RADIO ONLINE | Friday, August 6, 2010 | 11:52pm CT

For the second time this week, Emmis has postponed the vote on taking the company private. Even so, the broadcaster said it was encouraged by negotiations with a group of preferred shareholders. Emmis has rescheduled the shareholder vote for August 13, ten days after the original vote was to take place.

"We continue to engage in discussions with preferred shareholders," said Emmis general counsel Scott Enright. "The tenor of those talks has been encouraging, but we can't make any assurances at this time."

Eight firms that hold a collective 38% of Emmis preferred stock recently banded together in a bid to prevent the sale. Under Smulyan's proposal, approval from the holders of a majority of Emmis shares would need to back the sale.

Emmis shares closed at $2.07 on Friday, well below Smulyan's offer through JS Acquisition of $2.40 per share.