Backed by Billionaire, Tribune Rejects Gannett's Latest Bid
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Tribune Publishing, infused with a $70.5 million investment from billionaire Patrick Soon-Shiong, rejected Gannett’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% 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% 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.
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