MNG urges Gannett shareholders to vote for slate of director nominees
MNG Enterprises, the largest active shareholder in Gannett with an approximate 7.4% ownership interest, issued the following statement in response to a report by Glass Lewis regarding the election of directors to Gannett's Board of Directors at the Company's upcoming annual meeting of shareholders on May 16, 2019: "While we agree with Glass Lewis that 'Gannett's business has struggled on a stand-alone basis since the 2015 spin-off from TEGNA' and that a $12.00 per share offer implies a 'fairly attractive premium,' we firmly believe that shareholders must hold the incumbent Board accountable for the Company's track record of significant underperformance and for the Board's failure to take the necessary steps to maximize shareholder value in favor of continuing to pursue a digital transformation strategy that Glass Lewis admits is 'far from proven. Against the backdrop of the significant issues facing the newspaper industry and the premium cash offer that MNG has proposed, we believe that the best way for Gannett shareholders to effect meaningful change on the Board is to vote on the BLUE card FOR ALL of MNG's nominees, who are committed to acting as a catalyst to maximize shareholder value, including by supporting a full strategic alternatives process. Without strong advocates on the Board willing to explore all possible ways to enhance value, Gannett is at risk of continuing down the path toward complete value erosion. The election of ALL THREE of MNG's nominees is needed to send a clear message to the incumbent directors that the status quo is not acceptable, and the Board needs to explore all possible ways to enhance value for all Gannett shareholders. MNG's nominees - Heath Freeman, Dana Needleman and Steve Rossi - deserve Gannett shareholders' support because they possess the right mix of newspaper turnaround, real estate, and capital allocation expertise needed to improve the Gannett Board and shareholder orientation, and provide much needed fresh perspective that Gannett's incumbent directors lack."