Wednesday, September 27, 2006

Arnhold and S. Bleichroeder Urges Emmis (EMMS) Board to Reconsider Sale to CEO at 40% Premium

In a press release today on Emmis Communications Corp. (Nasdaq: EMMS), 1.7% holder (650K shares) Arnhold and S. Bleichroeder noted that in a recent 13D filing Emmis Chairman and CEO Jeffrey Smulyan disclosed that after withdrawing his $15.25 buy-out offer for Emmis on August 4, 2006, he engaged in exploratory discussions with the Special Committee regarding the "potential reinstitution of a proposal at a price of $16.80 per share in cash." The filing indicated these discussions ended on or around August 31, 2006.

The investment firm notes that a price of $16.80 represents a premium of 40% to the average closing price of Emmis shares on the five trading days prior to the date of this 13Dfiling.

Arnhold and S. Bleichroeder said the Board's apparent decision not to pursue a transaction at a premium of this magnitude was simply not in the best interests of shareholders. The firm urged the Board to take whatever actions necessary to revive discussions with Mr. Smulyan and proceed expeditiously toward a definitive agreement with him and a shareholder vote on the matter.

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