An affiliate of Alden Global Capital—the second-largest U.S. newspaper owner, widely known for slashing costs and laying off journalists—lost its bid in Delaware to force its way onto the board of Iowa-based Lee Enterprises Inc., which publishes 77 daily papers in 26 states.
Vice Chancellor Lori W. Will ruled against the hedge fund affiliate late Monday, finding after an expedited trial in Delaware Chancery Court that Lee’s board both complied with its advance notice bylaw and acted fairly in rejecting Alden’s proposed director slate.
“Applying enhanced scrutiny, I conclude that the board acted reasonably in enforcing a validly adopted bylaw ...
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