SHAREHOLDER ALERT: Journal Media Group, Inc. Acquisition by Gannett Co, Inc. May Not Be In The Best Interests of JMG Shareholders
NEW YORK, Oct. 12, 2015 /PRNewswire/ -- The fairness of the proposed acquisition of Journal Media Group, Inc. ("JMG" or the "Company") by Gannett Co., Inc. is the subject of an investigation by WeissLaw LLP, a national class action and shareholder rights law firm. The investigation focuses on possible breaches of fiduciary duty and other violations of law by the Board of Directors of JMG for agreeing to sell the Company to Gannett. On October 7, 2015 JMG announced that its Board of Directors unanimously approved a definitive agreement for Gannett to acquire all outstanding shares of JMG for $12.00 in cash.
WeissLaw is investigating whether JMG's Board acted to maximize shareholder value prior to entering into the agreement with Gannett. Notably, JMG recently announced positive financial results. It reported revenues of $115.8 million in the second quarter of 2015, as compared to $92.2 million in the previous year, representing a 26% increase in revenues year-over-year. Furthermore, the acquisition of JMG grants Gannett control of publications in more than 100 local markets in the U.S. Finally, the deal is expected to be immediately accretive for Gannett, with per share earnings of approximately $0.10- $0.25 in the first two years.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell JMG and whether JMG's Board acted in the best interests of JMG's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with Gannett. If you own JMG shares and would like more information about your rights or our investigation, please contact Joshua Rubin either by telephone at (888) 593-4771 or by email at [email protected].
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected] or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
Attorney Advertising. Past results do not guarantee a similar outcome.
SOURCE WeissLaw LLP
Share this article