Hedge fund loses ruling in Lee Enterprises takeover fight

By JOSH FUNK
AP Business Writer

OMAHA, Neb. (AP) — A judge has cleared the way for newspaper publisher Lee Enterprises to use a voting system that will ensure two longtime directors are reelected at its upcoming annual meeting despite the objections of a hedge fund that is trying to buy the company. The Davenport, Iowa-based publisher said the Delaware judge rejected Alden Global Capital’s motion for an injunction in Alden’s latest lawsuit Friday. The publisher of the St. Louis Post-Dispatch, Buffalo News, Lincoln Journal Star and dozens of other newspapers rejected Alden’s $141 million takeover offer in December because Lee said it “grossly undervalued” the company. The New York-based hedge fund has a reputation for imposing severe cuts and layoffs at the more than 200 newspapers it owns.