DOVER, Delaware (AP) – Gannett Co is facing a shareholder challenge to its USD1.4 billion acquisition by publishing rival GateHouse Media.
A complaint filed on Wednesday in federal court in Delaware said documents filed with the Securities and Exchange Commission contain misleading and incomplete information about the deal.
The lawsuit said shareholders need complete information regarding Gannett’s financial projections to determine the fairness of the buyout by GateHouse owner New Media. The lawsuit asks the court to block a planned November 14 shareholder vote until more information is provided.
The merger proposal calls for Gannett shareholders to receive USD12.06 in cash and New Media stock for each share of Gannett.
New Media plans to borrow USD1.8 billion to complete the acquisition.
A Gannett spokeswoman did not immediately respond to an email seeking comment.