In a letter sent to Gannett on Wednesday, Tribune Publishing said that after "thorough consideration" the offer was determined to be too low and not in the best interest of shareholders.
"The board and I remain confident in our ability to generate shareholder value in excess of Gannett's opportunistic proposal through a focused execution of our strategy," Tribune Publishing CEO Justin Dearborn said during an earnings call Wednesday afternoon. "The board has evaluated the unsolicited offer in this context and concluded it is not a basis for further discussion."
Tribune announced it was spurning Gannett shortly after releasing its first-quarter earnings but before a call with investors in which executives detailed plans to separate the company into three segments: the traditional publishing business, a digital content business and the Los Angeles Times.
Gannett, which owns USA Today, went public on Monday with its intent to solicit so-called withhold votes ahead of Tribune’s annual shareholder meeting. The NY Times reports the tactic, infrequently used in the world of deal making, encourages shareholders of the target company to essentially boycott their votes for director nominees. Gannett said it had filed preliminary proxy materials, urging investors to withhold their votes in the election of eight directors. The move is primarily symbolic, in that it will probably not block the nominees from being elected.
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