Investor Tells SEC He Wants Value Of Emmis 'Unlocked'
March 12, 2012 at 4:33 AM (PT)
Investor TIMOTHY J. STABOSZ of LAPORTE, IN, EMMIS COMMUNICATIONS CORP.'s third-largest shareholder, filed a statement with his latest purchase of stock in EMMIS that says he "believes that the company's common equity value does not adequately reflect the underlying value of the company's assets, and that it would be desirable to have that value 'unlocked.'"
STABOSZ's statement suggests strategies to increase shareholder value, including "monetization of the KXOS put/call arrangement, debt refinancings, preferred and/or common stock buybacks, a going private transaction, possible consideration for converting the Class B common shares to Class A common shares, or a sale or breakup of the company in whole or in part." He also proposes that "if EMMIS' common stock remains, for an excessive period of time, at a price level the reporting person views as unduly depressed, he may request that the company consider appointing him to the board of directors."
STABOSZ owns 1,790,150 shares of EMMIS, 5.3% of the Class A stock. He has purchased several thousand shares in recent months in transactions ranging from 1,200 to 104,922 shares at a time.