New York: Tribune Publishing Co, infused with a $70.5 million (Dh258.9 million) investment from billionaire Patrick Soon-Shiong, rejected Gannett Co’s latest takeover offer, escalating the battle between the newspaper publishers.
Gannett’s revised proposal is “clearly inadequate” to control the owner of the Los Angeles Times and the Chicago Tribune, chief executive officer Justin Dearborn said in a statement Monday. The $15-a-share proposal from the publisher of USA Today was 22 per cent more than its original bid of $12.25 offered publicly on April 25. Tribune sank in New York trading.
In rebuffing Gannett a second time, Tribune is issuing 4.7 million common shares to Soon-Shiong’s Nant Capital at $15 apiece, according to a separate statement Monday. Following the deal, Soon-Shiong will become vice-chairman on the board and Nant Capital will have a 12.9 per cent stake, making it Tribune’s second-largest shareholder. That would put it ahead of Oaktree Capital Management, which called last week for a board committee free of top shareholder Michael Ferro’s influence to consider Gannett’s offer. The moves are the most aggressive yet by Ferro to fend off Gannett.
Gannett said Monday that Tribune was manoeuvring behind the backs of shareholders to gain disproportionate control of the company, according to a statement.
