Emmis Shareholder Vote Postponed After Quorum Not Reached
August 3, 2010 at 5:04 PM (PT)
The EMMIS COMMUNICATIONS shareholders' vote on CEO JEFF SMULYAN's buyout bid to take the company private has been postponed until 6:30p (ET) FRIDAY. The INDIANAPOLIS BUSINESS JOURNAL reports that the company said it did not receive enough votes, in person or by proxy, to reach a quorum. The paper says that only five shareholders showed up to the meeting at EMMIS headquarters and that SMULYAN did not attend.
Attorney JIM STRAIN, representing EMMIS, said that the $2.40/share tender offer may be revised by WEDNESDAY but that "We're not in a position to tell what the status of the offer is. An announcement has to be made before the market opens tomorrow (WEDNESDAY). We don't know what that offer will be."
Last week (NET NEWS 7/27), the buyout of EMMIS COMMUNICATIONS by JEFF SMULYAN's JS ACQUISITION, LLC with ALDEN GLOBAL CAPITAL won a round in court when MARION COUNTY Superior Court Judge ROBYN MOBERLY denied a motion by dissident shareholders for a temporary restraining order to block the deal.
In anticipation of TODAY's vote, WALL STREET reacted negatively, by dropping EMMIS stock nearly 11% to $1.96. That's far below CEO JEFF SMULYAN's $2.40 per share buyout offer. Follow EMMIS' stock here.
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