There’s been no news of a breakthrough, just SEC filings to formalize the buyout delay that Emmis Communications announced Tuesday, but it appears stock traders are betting that the buyout will still get done.
The price of Emmis common stock rebounded by 50 cents, or 31.3%, on Wednesday to $2.10. That’s still 30 cents below the proposed $2.40 per share buyout by Emmis founder and CEO Jeff Smulyan.
The SEC filings Wednesday noted that Smulyan is still negotiating with holders of more than a third of the company’s preferred stock who have effectively blocked the effort to take Emmis private unless they get a better deal.
At this point, the adjourned shareholders meeting is set to resume Friday evening – the same day the tender offers for the common and preferred shares are now scheduled to expire. Stay tuned.