NEW YORK (Reuters) – The publisher of the Chicago Sun-Times newspaper urged shareholders to reject an effort by a dissident investor to replace its board, but said on Wednesday it would accept whatever decision they make.
Sun-Times Media Group called Davidson Kempner Capital Management's plan to replace the board "ill-conceived," adding it has its own cost-cutting plan.
The publisher said it plans to reduce costs by more than $50 million, in addition to $50 million that it cut in 2008. It also plans to break even on a cash-flow basis in the next 12 to 24 months, it said in a statement.
The Sun-Times statement came two days after Davidson Kempner objected to the board's decision to keep several directors who had planned to leave.
Davidson Kempner, which owns 5.89 percent of the Sun-Times's shares, according to Reuters data, said it is a decision by the board to "further entrench itself, despite repeated previous commitments."