ST. LOUIS — The owner of the Post-Dispatch said it had approved what’s known as a “poison pill” plan to guard against a hostile takeover as it considers New York hedge fund Alden Global Capital’s unsolicited offer to buy it.
Davenport, Iowa-based Lee Enterprises’ plan would kick in if Alden gets control of 10% or more of Lee’s stock in the next year. At that point, other shareholders could buy shares at a 50% discount or get free shares for every share they already own. Flooding the market with additional shares would dilute the stock, making it more expensive for Alden to acquire a controlling stake.
Alden said in a filing last week that it owns 6.1% of Lee.
