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Judge rules against Emmis shareholders, allows sale

IBJ Staff
July 27, 2010
Keywords
Communications, Emmis Communications, Law, Media & Marketing, Radio, Radio Station Owners
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A Marion Superior Court judge on Tuesday denied a motion that sought to temporarily block the buyout of Emmis Communications Inc.

The Indianapolis-based public company, which owns 23 radio stations in the United States, in May consented to a purchase by JS Acquisition LLC, a private company formed by Emmis Chairman and CEO Jeffrey H. Smulyan. The acquisition price is more than $500 million when including assumption of debt.

Emmis shareholders challenged the acquisition and sought a temporary restraining order to block it.

Plaintiffs’ lawyers argued in Marion Superior Court that the Aug. 3 deadline for shareholders to accept a buyout offer should be delayed until they have more information to make a decision.

But Judge Robyn Moberly said the shareholders “failed to show a likelihood of success on the merits of any of the claims.”

JS Acquisition is offering $2.40 a share in cash, a 12-percent premium to the closing price of $2.14 on May 26, the day Emmis’ board unanimously approved the transaction. The offer was announced on April 26.
 

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  • 20% premium for 2 month investment, hellooooo
    GollyJuly 28, 2010 3:43 PM
    Indianapolis judge ruled this morning AGAINST dissident shareholder group. Looks like this baby is going to close on 9/30 for $2.40 a share cash--today's price is $1.99.

    Emmis Communications (ticker EMMS)

    Emmis Corporation Merger Arbitrage Details

    * Type: Going private acquisition via tender offer
    * Acquirer: JS Acquisition & Alden Global Capital--run by existing Emmis CEO and founder Jeff Smulyan
    * Target: Emmis Corporation
    * Announced date: April 26, 2010
    * Closing date: September 30, 2010
    * Closing value: $2.40


    Dissident shareholder group LOST today: 20% premium for September 30, 2010 closing.

    http://www.ibj.com/judge-rules-against-emmis-shareholders-allows-sale/PARAMS/article/21351
    Reply to CommentFlag Comment

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