Firm recommends approval of newspaper merger

Another independent proxy advisory firm has recommended shareholder approval of the proposed merger between Journal Media Group and Gannett Co. Inc., Journal Media Group said Friday. Journal Media Group, which is the parent company of the Milwaukee Journal Sentinel and JSOnline .com, said Glass Lewis & Co. stated in a Wednesday report: “In our opinion, the proposed purchase price sufficiently values the company’s recent and reasonably expected future financial performance, as well as the value of its real estate holdings, considering the risks and challenges associated with the standalone alternative.” Journal Media Group shareholders will vote March 1 on the proposed $280 million acquisition of the company by Gannett. If the transaction is approved, Gannett would acquire all of the common stock of Journal Media Group for $12 per share in cash. Glass Lewis stated “the purchase price represents a fair price at which JMG shareholders can cash out their investments in the company, thereby realizing an immediate and assured value at a substantial premium.” The merger is being opposed by a group of shareholders led by investment manager Mario Gabelli. Those shareholders have questioned whether Journal Media Group’s valuation of its real estate holdings is adequate. Earlier this month, Institutional Shareholders Services Inc. recommended shareholder approval of the merger.