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Lee Enterprises (NASDAQ:LEE) on Friday said it adopted a limited-duration shareholder rights plan, also known as a “poison pill”, in response to the accumulation of its stock by India-based entity Quint Digital.
The board of the subscription and advertising platform noted that Quint has built and increased its ownership position to more than 12.4% of Lee Enterprises’ outstanding common stock.
Quint has also highlighted its ownership in Lee in its public materials in a bid to outline its expansion plans into the North American media tech market.
Lee also noted that Quint, which controls a digital publishing business, seeks to compete with its subsidiary, BLOX Digital.
“The company has maintained an open dialogue with Quint Digital and plans to continue these conversations,” said Lee Enterprises Chairman Mary Junck.
Under the rights plan, Lee is issuing one right for each share of common stock as of the close of business on April 8.
The rights would initially trade with Lee common stock and would generally become exercisable only if any person acquires 15% or more of the company’s outstanding common stock.