In a move that reportedly escalates a battle between two major newspaper publishers, Tribune Publishing Co. has rejected the latest takeover offer from Gannett, according to a report by Bloomberg. The rejection comes after Tribune received a $70.5 million investment from a “white knight” in billionaire Patrick Soon-Shiong.
“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,” Bloomberg reports. “The $15-a-share proposal from the publisher of USA Today was 22 percent more than its original bid of $12.25 offered publicly on April 25. Tribune sank in New York trading.”
The report adds: “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 percent stake, making it Tribune’s second-largest shareholder.”