DallasNews stock jumps as Hearst ups acquisition consideration to $16.50 per share

DallasNews (NASDAQ:DALN [https://seekingalpha.com/symbol/DALN]) stock was surging as the New York-based Hearst increased [https://seekingalpha.com/pr/20231422-dallasnews-corporation-announces-amendment-to-hearst-merger-agreement-with-a-final-increase] its acquisition consideration for the holding company of _The Dallas Morning News_ to $16.50 per share from $15.00.

Shares were +8.41% Monday pre-market to $15.49.

The board had rejected [https://seekingalpha.com/news/4489558-dallasnews-rejects-aldens-revised-bid] MNG Enterprises's $18.50 per share cash acquisition offer at August end. MNG Enterprises is an affiliate of Alden Global Capital.

According to a September 9 statement, proxy advisory firm ISS had said [https://seekingalpha.com/news/4493394-dallasnews-holders-should-vote-in-favor-of-hearst-deal-iss-says] shareholders should vote in favor of DALN's $15 per share sale to Hearst. Proxy adviser Glass Lewis has also recommended DallasNews holders vote in favor of the deal with Hearst.

The $16.50 per share cash consideration represents a premium of 276% over DALN's $4.39 closing price per share of series A common stock on July 9.

"We are pleased to have been able to secure a higher price for DallasNews shareholders and recommend that all shareholders vote FOR the merger with Hearst," said board chairman John Beckert.

"DallasNews shareholders have an important choice to make: either support this value creating transaction and realize a significant premium on their investment, or alternatively, DallasNews will remain a public company and its shares may return to their pre-announcement trading value of approximately $4 per share," added Beckert.

Merger with Hearst is supported by the company’s largest shareholder, Robert W. Decherd.

The board recommends that shareholders vote in favor of the merger today and secure a certain, cash premium for their shares.

Shareholders should vote on or before September 22 at 10:59 p.m. CT.

MORE ON DALLASNEWS

* DallasNews holders should vote in favor of Hearst deal, ISS says [https://seekingalpha.com/news/4493394-dallasnews-holders-should-vote-in-favor-of-hearst-deal-iss-says]
* DallasNews rejects Alden’s revised bid [https://seekingalpha.com/news/4489558-dallasnews-rejects-aldens-revised-bid]
* Financial information for DallasNews [https://seekingalpha.com/symbol/DALN/income-statement]