DOVER, Del. — Gannett Co. is facing a shareholder challenge to its $1.4 billion acquisition by publishing rival GateHouse Media.
A complaint filed Wednesday in federal court in Delaware says documents filed with the Securities and Exchange Commission contain misleading and incomplete information about the deal.
The lawsuit says shareholders need complete information regarding Gannett’s financial projections to determine the fairness of the buyout by GateHouse owner New Media. The lawsuit asks the court to block a planned Nov. 14 shareholder vote until more information is provided.
The merger proposal calls for Gannett shareholders to receive $12.06 in cash and New Media stock for each share of Gannett.
New Media plans to borrow $1.8 billion to complete the acquisition.
A Gannett spokeswoman did not immediately respond to an email seeking comment.
Randall Chase, The Associated Press