Wednesday, January 21, 2009
The Chicago Sun-Times
Davidson Kempner Capital Management says that it has received the votes (technically, the "consents") that it needed for the success of its solicitation campaign. It says it is entitled now to have its nominees on the board of the Sun-Times Media Group, the parent company of the Chicago Sun-Times, and take control.
Sun-Times Media hasn't yet conceded defeat. It says it will retain an independent inspector to verify the results.
Davidson Kempner has criticized what it calls the “cash burn rate” under the incumbent directors. The cash balance apparently fell by about $20 million in the course of the third quarter of 2008.
Earlier this month RiskMetrics Group/ ISS endorsed the consent campaign.
Looking at the stock chart insert, youy can understand shareholder unhappiness. But such are the difficulties of the dead-tree newspaper business these days that it isn't obvious a change of control will do a lot of good.