Despite Pulitzer vs. Pulitzer Lawsuit, Shareholders to Vote on Offering
Apr. 01, 1986
ST. LOUIS (AP) _ Backed by a favorable court ruling, officials of the St. Louis Post- Dispatch' s parent company say they are proceeding with plans for a shareholders vote Wednesday on a limited public stock offering.
U.S. District Judge William L. Hungate on Monday denied a request to block the special meeting. Hungate also set April 7 as a date for a hearing on a temporary injunction sought by minority shareholders, all members of the Pulitzer family.
Joseph Pulitzer Jr., chairman of Pulitzer Publishing Co., said the Wednesday meeting will be held to amend articles of incorporation and provide liquidity for shareholders wishing to sell stock while still permitting the Pulitzer family to retain control.
A letter outlining preliminary details of the limited stock offering was sent last month to shareholders after 69.6 percent of them rejected a $500 million takeover attempt by Michigan financier A. Alfred Taubman. Some members of the Pulitzer family had supported that bid.
Kate Davis Pulitzer Quesada, a sister of Pulitzer Publishing's chairman and vice chairman, heads the dissident shareholder group along with her sons, Peter and Ricardo.
''This was a very hard step for us to come this far,'' Peter Quesada said Monday after the dissidents' filing Monday of a lawsuit charging Joseph and Michael E. Pulitzer and their cousin, David E. Moore, with acting improperly. ''We have been pushed. We have gone to them for years to find an acceptable (sale) solution, fair to us and fair to them.''
Michael Pulitzer, vice chairman, said, ''On the advice of counsel, we are declining further comment on the litigation. We will go ahead with the (Wednesday shareholders meeting) plans announced earlier.''
The dissdents' lawsuit contends the two Pulitzers and Moore acted fraudulently in setting up a voting trust for nearly 80 percent of the publishing company's shares and resisting Taubman's takeover bid.
Joseph Pulitzer has urged rejection of the Taubman offer, labeling it inadequate.
Pulitzer Publishing Co., in addition to the Post-Dispatch, owns newspapers in Arizona and the Chicago area as well as several radio and television stations.