Lee Enterprises (LEE) Higher As Buffett Gets Serious About His Investment
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Shares of Lee Enterprises Inc. (NYSE: LEE) are rocking higher Wednesday after Warren Buffett disclosed that his Berkshire Hathaway nearly doubled its stake in the embattled newspaper company.
In its second quarter 13F, Berkshire showed a stake of 3,225,822 shares, up from the 1,655,125 shares disclosed in the first quarter. Berkshire is now the second largest shareholder at 6.2 percent.
More-importantly, the raised stake suggests that Buffett wasn't in the stock just as a fluke.
When the stake was first disclosed, it was noted that the position may have come as a result of a refinancing deal. In January 2012, as part of a prepackaged Chapter 11 process, Lee Enterprises implemented a refinancing to extend the maturities of its borrowings to December 2015 and April 2017. As part of the deal, second lien creditors were given approximately 6,744,000 shares of Lee Common Stock. Buffett reportedly owned Lee second lien debt. However, one hint that Buffett gave that there was something more to the Lee position was the request to have confidential treatment on the position, which the SEC denied.
It is no secret that Buffett has been crazy for newspaper companies recently. So it makes sense that Lee becomes his next target.
Shares of LEE are up 19.5 percent to $1.59.
In its second quarter 13F, Berkshire showed a stake of 3,225,822 shares, up from the 1,655,125 shares disclosed in the first quarter. Berkshire is now the second largest shareholder at 6.2 percent.
More-importantly, the raised stake suggests that Buffett wasn't in the stock just as a fluke.
When the stake was first disclosed, it was noted that the position may have come as a result of a refinancing deal. In January 2012, as part of a prepackaged Chapter 11 process, Lee Enterprises implemented a refinancing to extend the maturities of its borrowings to December 2015 and April 2017. As part of the deal, second lien creditors were given approximately 6,744,000 shares of Lee Common Stock. Buffett reportedly owned Lee second lien debt. However, one hint that Buffett gave that there was something more to the Lee position was the request to have confidential treatment on the position, which the SEC denied.
It is no secret that Buffett has been crazy for newspaper companies recently. So it makes sense that Lee becomes his next target.
Shares of LEE are up 19.5 percent to $1.59.
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