An announcement called by media authoritative, Gannett Co. (NYSE: GCI) to acquire Tribune Publishing Co. (NYSE: TPUB) worth $400 million left reviewing board into a negotiating panel. TPUB’s CEO Justin Dearborn called CGI as ‘erratic’ and ‘unreliable’ to be ‘playing games’ during the deal execution layout.
INSIGHT: MONDAY:Gannett offered to acquire Tribune Publishing in a deal worth $400 million or $815 million – including debt. It was seen as move initiated to associate labels like the USA Today, Los Angeles Times, Chicago Tribune, the Baltimore Sun, Hartford Courant, and the Orlando Sentinel (source: WSJ).
In accord with deal guidelines, CEO Robert Dickey had offered to pay $12.25/share – i.e. a 63% premium to Tribune’s *CLOSING stock, the last Friday – in his letter to TPUB CEO, Justin Dearborn.
As per Wall Street Journal’s information today, Mr Dearborn had personally engaged with Gannett CEO Robert Dickey ‘numerous times both in writing and via phone’ before his company went public on with the Monday offer.
“We do not understand why you found our response to your proposal to be inadequate.We made every effort to establish open lines of communication and maintain a constructive dialogue but Gannett has been playing games.” – he said
The tone projects towards an evident complexity during deal execution between the two newspaper giants.However, the to-be scope was cheered on Wall Street where investors sent shares in both companies up.
On a related note,CEO Robert Dickey said representatives of TPUBhad agreed to have dinner with representatives of CGI on 18 April in Washington, but CGI had canceled that meeting without revealing any particular reason.
Both spokespersons couldn’t be reached for a comment over this latest update.