Gannett raised its all-cash offer to acquire Tribune Publishing to $15 per share, up from $12.25 per share, according to a Securities and Exchange Commission filing Monday. Gannett (GCI) also offered to assume about $385 million of Tribune’s debt, valuing the total deal at about $864 million.
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Tribune Publishing is a diversified media company with a diverse portfolio of news and information brands that include 11 award-winning major daily titles, more than 60 digital properties and more than 180 verticals in markets, including Los Angeles; San Diego; Chicago; South Florida; Orlando; Baltimore; Carroll County and Annapolis, Md.; Hartford, Conn.; Allentown, Pa., and Newport News, Va. “We certainly hope that (the new offer) will accelerate the process”, he said.
The new CEO of Tribune, Justin Dearborn, believes his plans to transform Tribune Publishing can be done without Gannett’s help. A group of shareholders led by private equity investor Andrea Bonomi, luxury tycoon Diego Della Valle, Pirelli, insurer UnipolSai and Milanese investment bank Mediobanca launched a counter bid on Monday offering 70 euro cents a share for the loss-making group. Gannett previously said it would save $50 million annually through the Tribune Publishing acquisition. Gannett, the owner of USA Today and a slew of other local news publications across the country, upped its bid after the initial one was rejected by Tribune’s board of directors earlier this month. Revenue remained flat at $398.2 million as print advertising sales continued to tumble. “Our increased, all-cash offer provides Tribune shareholders with a significant premium of 99 percent and immediate, certain value”.
John Jeffry Louis, chairman of Gannett’s board, told USA TODAY that he and Dickey met with Michael Ferro, Tribune’s board chairman, last week. Under the plan, should a buyer come in and acquire 20 percent or more of the company, shareholders would be eligible to sell their shares at twice the exercise price.
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Meanwhile, Gannett is urging Tribune shareholders to withhold their votes next month for election of eight nominees to Tribune’s board of directors.
