Peter Lund and Susan Bayh have another week to decide whether or not to approve a privatization plan offered August 18 by Emmis Communications Chairman/CEO Jeff Smulyan.
This marks the third extension of a deadline that was originally set for Sept. 16.
Lund, a former CBS Television Network president, and Bayh, the wife of U.S. Senate candidate Evan Bayh, comprise the special committee of independent and disinterested directors formed by Emmis’ board of directors.
Up for extended consideration is whether E Acquisition Corp. — a corporation created by Smulyan for the privatization offer — may acquire all outstanding Class A shares of Emmis stock at a cash purchase price of $4.10 per share.
At the closing bell Friday, shares of EMMS sat at $3.98.
Smulyan told RBR + TVBR on Oct. 7, when the second extension was granted, that “It’s just a matter of needing extra time.”
Speaking Thursday in a conference call with investors to discuss Emmis’ fiscal Q2 2017 results, Smulyan said negotiations with the special committee have been “productive and professional,” and reiterated that the agreement will be up to Emmis’ shareholders should Lund and Bayh give their OK to his proposal.
“We believe it makes more sense to be private,” Smulyan said. “There are costs and issues of being a public company of this size.”
Meanwhile, Smulyan reiterated that Emmis would divest its radio stations in Terre Haute, Ind., and WLIB-AM 1190 in New York, as well as all publications except its Indianapolis Monthly.
“We have had some very constructive conversations regarding Texas Monthly and our Terre Haute stations,” he says.