USA Today publisher slams rival for “lack of engagement” with “unsolicited” takeover offer and asks shareholders to show support
US newspaper publisher Gannett has turned the heat up on Tribune, a rival company it wants to acquire.
Gannett, which publishes USA Today and a number of local newspapers in the UK through Newsquest, last week made an $815m (£556m) offer for the Los Angeles Times and Baltimore Sun owner.
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Tribune confirmed it had received an “unsolicited proposal”, adding in a statement that it is “well-positioned to create value for shareholders”.
Gannett has condemned Tribune's board for a "lack of engagement" with the offer.
And it today announced that it has asked Tribune shareholders to “withhold” votes in connection with the election of eight nominees to the company's board of directors.
It said this would act as a “referendum that the Tribune board should substantively engage immediately” with Gannett over the $12.25-per-share cash offer.
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“We intend to give Tribune stockholders the opportunity to send a clear message to the Tribune board that its lack of engagement with our board and management team regarding our highly compelling, premium offer for $12.25 per share in cash is unacceptable,” said Gannett chief executive Robert Dickey.
“We remain ready to work constructively with the Tribune Board and management to negotiate a definitive merger agreement and quickly complete a transaction that would provide significant value to both companies’ stakeholders.”