Gannett Co. Spikes; Icahn Discloses 6.63% Stake

Gannett Co. Inc.

jumped 6 percent after hours on news that activist investor Carl Icahn acquired a 6.65 percent stake in the company. Icahn, who acquired the shares for $229 million, said in a filing that he acquired the shares prior to Gannet's announcement of a plan earlier this month to split its publishing and broadcasting operations into two separately traded companies. The company owns more than 40 television stations, USA Today and 81 local newspapers. Icahn said he'd intended to press this issue with management but now plans to have discussions with the company on the planned separation, corporate governance, capitalization and capital allocation. Gannett's plan to split its operations in two follows similar action last year by Rupert Murdoch who split News Corp.

from Twenty First Century Fox

and privately held Tribune Co., which took the step earlier this year. After hours, Gannett changed hands recently at $35.97, up 5.6 percent.