Tomorrow, August 3rd, is scheduled to be the day that all the pieces come together for CEO Jeff Smulyan’s buyout of all of the other shareholders of Emmis Communications. There’s been no filing yet with the SEC of any delay, but there’s also been no word of Smulyan coming to terms with preferred stock holders who have the votes to derail the going private transactions.
One obstacle was removed last week when a state judge in Indiana refused to issue an injunction blocking the buyout at $2.40 per share. That ruling came in several consolidated shareholder lawsuits which claimed that the price shortchanged them.
But a group of holders of the company’s preferred shares, led by Geoffrey Raynor and Daniel Loeb, still have to be dealt with. They have vowed to vote “no” on amendments to Emmis’ articles of incorporation which are vital to taking the company private unless they get a sweetened deal. And since the dissidents hold over one third of the preferred shares, Smulyan can’t reach the required two-thirds vote without them.