They've had significant fund redemptions, and, with their recent selling of preferred stock in both the 9/30 and 6/30 quarters, they could possibly be ready to move on, in exchange for a dropping of all hostilities/suits. My guess only.
They probably don't view the weakness in the common stocks of radio companies as particularly heartening, either. (After all, it is apparently why they walked away, little over a year ago, from financing the EMMS going private transaction.)
They are certainly not going to pay $40 a share, to the rest of the holders, if they just bought 23% of the preferred for $15.25. That's a pipedream.
The preferred has no liquidity. And, according to Inside Radio, a number of the hedge and equity fund holders are getting redemptions, and need to get out. This is a great opportunity, therefore, for both EMMS, and any sellers that are (unfortunately for them) under duress. I never thought I'd ever say this, but: God bless Sam Zell. [lol]
Oops! My mistake. My stupid service provider, mffais.com, incorrectly reported the transaction I note above as a transaction for Alden in Emmis's COMMON stock. As you correctly point out, the position they hold of 1.0 million shares is in the preferred stock. (But I should point out to you that they DID sell 82,000 shares of preferred stock during the quarter ended 9/30/11, which reduced their position. So there is nothing that says they are, per se, "holding on" to the rest of their pfd. shares.)
It appears they have sold out, totally, on the common.