Emmis’ Chief Makes Bid to Buy the Media Firm
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INDIANAPOLIS — A week after losing a bid to buy the Washington Nationals baseball team, the chief executive of Emmis Communications Corp. said Monday that he would try to purchase his company in a deal valued at $567 million.
If the buyout succeeds, Jeffrey H. Smulyan will take the Indianapolis-based media group into the private sector even as it struggles to regain profit from sluggish advertising sales.
Smulyan, who already owns nearly 17% of the company, made a nonbinding offer of $15.25 in cash for each Emmis common share, 13.6% more than Friday’s closing price of $13.43.
But Emmis shares traded well above that level Monday, a sign that investors and analysts thought a final bid would probably be higher. Emmis stock soared $2.82, or 21%, to $16.25.
The board formed a special committee of independent directors to consider the proposal.
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