Shares are up 4.9% in postmarket trading after Carl Icahn disclosed that he recently bought a 6.6% stake in the TV, newspaper, and digital power. He made the investment after concluded that the stock was “undervalued and that value could be created by splitting the Issuer into separate print and broadcast companies,” he says in an SEC filing. Gannett decided to do just that early this month, after Icahn had begun to amass his position. That process began in mid-June. Icahn says that has has “not had any contact” with Gannett before today but plans to talk to management and the board about issues “relating to the planned separation, corporate governance, capitalization and capital allocation.”
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“We are happy to discuss our plans with Mr. Icahn, as we do with all of our shareholders,” Gannett says.
Icahn has an abundant number of fans and foes after agitating for shareholder interests at companies including Blockbuster, Time Warner, and Lionsgate. Allies say that he prods entrenched managers to make their companies more efficient. Enemies say he simply promotes cost cutting and short-term priorities over long-term ones.
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