Gannett’s board has rejected an unsolicited proposal to be bought by media company MNG Enterprises, known as Digital First Media, Gannett said Monday. The board’s rejection was unanimous.
“After careful review and consideration, conducted in consultation with its financial and legal advisers, the Gannett board concluded that MNG’s unsolicited proposal undervalues Gannett and is not in the best interests of Gannett and its shareholders,” the company said in statement. “In addition, Gannett does not believe MNG’s proposal is credible.”
MNG on Jan. 14 offered to buy Gannett for $12 a share in cash, which at the time represented a 23 percent premium over its most recent closing price of $9.75 a share.
“As a public company, Gannett’s board would engage with any party that makes a bona fide, credible proposal that appropriately values the company and is capable of being closed. MNG’s proposal fails that test,” says a release from Gannett.
Gannett owns The Great Falls Tribune in Montana.