IBJNews

Smulyan considering another option to take Emmis private

Back to TopCommentsE-mailPrintBookmark and Share

Emmis Communications Corp. CEO Jeff Smulyan is considering an "alternative structure" for his bid to take the company private after facing opposition from a group of preferred shareholders attempting to block the deal.

The Indianapolis-based radio and magazine company postponed a decision on the deal Tuesday night after it failed to receive enough votes from shareholders, either in person or by proxy, to reach a quorum. It will convene another shareholders’ meeting at 6:30 p.m. Friday.

As the $2.40-per-share offer stands, Smulyan needs two-thirds of preferred shareholders to OK a change in the company's articles of incorporation for the the deal to proceed. Preferred shareholders also must agree to convert their shares into bonds—at 60 cents on the dollar—in exchange for an attractive interest rate of 12 percent. 

Last month, eight firms that hold Emmis’ preferred stock banded together to prevent the sale. Collectively they hold 38 percent of Emmis’ preferred shares.

Although the company did not disclose details, it said in a news release that Smulyan is continuing to negotiate with the preferred shareholders and is considering other avenues, including an option that would not require their consent.

Still, “there can be no assurance that either an agreement will be reached with the group of holders of preferred stock or that an alternative structure can be implemented,” Emmis said in the release.

A majority of common shareholders also would have to approve the buyout.

Emmis stock opened Wednesday morning at $1.60 and soared nearly 29 percent, to $2.06, by late morning, stirring optimism that a deal could get done despite the delay.

Smulyan, through his JS Acquisition Inc. and New York private equity firm Alden Global Capital, has offered $2.40 per common share, a bid that valued the company at about $90 million.

Founded by Smulyan in 1981, Emmis owns 23 radio stations in the United States and publishes regional magazines in seven cities, including Indianapolis Monthly. It also operates radio stations in Slovakia and Bulgaria.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT