Tribune Publishing Co (NYSE:TPUB) shares climbed 22.26% to $14.08 on Monday following reports that Gannett increased its bid price to acquire the company.
Tribune Publishing Co (NYSE:TPUB) shares already got a strong boost a few weeks back when news broke out that Gannett Co (NYSE: GCI) plans on buying the publishing company for approximately $815 million. Gannett recently upped its bid to $15 per share from the earlier $12.25 per share price.
This revised offer, which was disclosed by the Securities and Exchange Commission, brings the total deal price to $864 million. Tribute Publishing has mentioned that they will still discuss the terms of the arrangement in their next shareholder meeting on June 2.
“We’re looking for the board to move forward so that we can get in and start our due diligence,” mentioned Gannett CEO Robert Dickey. Gannett currently owns USA TODAY and more than 100 other media properties including including the Cincinnati Enquirer, Detroit Free Press, Des Moines Register, Arizona Republic and Milwaukee Journal Sentinel across the country and has been expanding since spinning off from its former parent less than a year ago. Meanwhile, Tribune Publishing Co (NYSE:TPUB) owns Los Angeles Times, Chicago Tribune, and nine other daily publications.
Tribune Publishing has confirmed receipt of the higher bid earlier this week and said that it will review the terms thoroughly. The revisions to the offer were apparently made after an analysis of the company’s latest financial statements, which revealed more cash holdings, slightly lower debt, and lower pension liability.
For now, Gannett is launching a proxy campaign among Tribune Publishing shareholders to ask them to withdraw their votes in electing the company’s board for the annual meeting. For Dickey, combining the two publications would not only allow them to expand their geographical reach but also create a sustainable model in an industry that is struggling to keep up with the constantly evolving media landscape.
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