Emmis Ends Buyout Bid

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The attempt by Emmis Communications CEO and founder Jeff Smulyan to take his company private is over.

The company issued a statement yesterday saying Indianapolis-based radio, TV and magazine publishing company will remain public.

The statement indicates that the deal fell through because of Smulyan’s partner Alden Global Capital, and legal action may be taken against Alden.

“Last month, Emmis Communications and Alden Global Capital agreed, subject to completion of definitive documentation, to terms that would allow a group of preferred shareholders that previously did not support the exchange offer and amendments to agree to support the transaction. It should be noted that Alden Global Capital was a willing and active participant in the negotiations and materially improved the terms of their proposed investment,” said part of the statement by Emmis.

Four years ago, Smulyan made a bid to take Emmis private at $15.25 per share of common stock.

This year’s offer, announced May 25, was for $2.40 a share for the common stock, and an exchange of new Emmis debt for the preferred stock. However, several shareholders sought a better deal, to which Alden wouldn’t bulge.