Tribune Publishing Rejected Gannett's Acquisition Offer, Highlights 'Clearly Inadequate' $15/Share Price

Tribune Publishing Co TPUB announced Monday morning that it has officially rejected a pending acquisition from Gannett Co Inc GCI.

Gannett offered to acquire Tribune Publishing for $12.25 per share in late April, but revised its bid higher to $15 per share in mid-May.

Related Link: What Would A Gannett-Tribune Takeover Mean For The News Industry?

Tribune Publishing said on Monday that its board of directors completed a review of the proposal and rejected the deal as it is not in the best interest of shareholders. The board also expressed "serious doubts" over Gannett's ability to enter into a transaction in the first place, given its approximate $650 million pension and OPEB liability.

However, Tribune Publishing did say that it is prepared to enter into a mutual agreement in which both companies will engage in due diligence and discussions to assess if an agreement can be reached which is suitable to everyone.

"The Gannett $15.00 per share proposal for all of Tribune is clearly inadequate as a control investment in Tribune and, as ISS has pointed out, our Board 'has grounds to decline to engage' on Gannett's proposal," said CEO, Justin Dearborn. "We remain unrelenting in our pursuit of value whether on a standalone basis or through a transaction, and believe the $70.5 million growth capital investment announced today from Nant Capital — making Nant Tribune's second largest shareholder — will support Tribune's transformation strategy.