LOS ANGELES (CBSLA.com) — The nation’s second-largest newspaper chain is poised to purchase the company that owns the Los Angeles Times in a deal that could be announced Monday, according to reports.
Gannett, publisher of USA Today, will reportedly offer $18.50 to $19 per share for stock in Tronc, the publisher of the Los Angeles Times, the Chicago Tribune and The Baltimore Sun, according to Politico.
Tronc stands for “Tribune online content”, the name adopted by Tribune Publishing in June.
Tribune Chairman Michael Ferro rebuffed a $400 million takeover bid by Gannett made in August – about $18 a share. Politico reported Ferro’s partners in the Merrick Media investment firm have lobbied him to sell to Gannett.
Gannett reportedly believes the deal would pay off by enabling many of its operations to share costs.
One hurdle to the sale could be a lawsuit by the second-largest shareholder in Tronc, Patrick Soon-Shiong, who wants the Times to be locally owned, Politico said.
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