The tepid reception by holders to the tender offer by Emmis Communications for its preferred stock has been followed by a pop in the trading price for the shares. How high will the price go?
Emmis was able to buy back less than half the number of shares it had offered to purchase when its “Dutch auction” tender closed. The shareholders who did tender are being paid $15.56 each for the 164,400 preferred shares which were tendered.
Only 5,300 shares traded on Tuesday (1/3) after the tender results were announced, but the trading range was $16.98-17.51 – all well above what Emmis had offered.