Tribune CEO Blasts Gannett as "Playing Games" With Takeover Bid
April 26 2016 - 9:30AM
Dow Jones News
Tribune Publishing Inc. Chief Executive Justin C. Dearborn said
its board is reviewing Gannett Co.'s roughly $400 million takeover
offer but criticized the USA Today owner for "playing games" during
the proposal process.
Mr. Dearborn added that Gannett is being "erratic and
unreliable" in a letter dated Monday to Gannett that Tribune
Publishing made public in a regulatory filing Tuesday.
"We do not understand why you found our response to your
proposal to be inadequate," Mr. Dearborn said, adding that he had
personally engaged with Gannett CEO Robert Dickey "numerous times
both in writing and via phone" before Gannett went public Monday
with its offer.
Gannett's Mr. Dickey responded Tuesday in a letter, obtained by
The Wall Street Journal, that he was "heartened" to hear that
Tribune was considering its proposal.
On Monday, Gannett said it had offered to acquire Tribune
Publishing in a deal valued at about $400 million—or $815 million,
including debt—that would combine titles like the USA Today, Los
Angeles Times and Chicago Tribune. Tribune said then that it has
hired advisers which are helping it review the offer and would
"respond to Gannett as quickly as feasible."
Mr. Dearborn said in his letter that Tribune responded
"promptly" following Gannett's initial letter on April 12. He said
representatives of Tribune Publishing agreed to have dinner with
representatives of Gannett on April 18 in Washington, D.C., but
Gannett canceled that meeting without offering a reason.
Mr. Dickey said that April 18 dinner was "scheduled well before
our offer was made and was a social dinner" at a Newspaper
Association of America conference, where "no substantive discussion
could have taken place."
Mr. Dickey said that Gannett had closed its acquisition of
Journal Media Group around the same time as the conference and
instead decided to host a dinner to welcome executives from Journal
Media—which he said Tribune Publishing knew.
A Tribune Publishing representative wasn't immediately available
to comment on Mr. Dickey's response.
In his letter, Mr. Dearborn said, "We made every effort to
establish open lines of communication and maintain a constructive
dialogue," but that "Gannett has been playing games."
He said the board will still "fully assess" Gannett's
proposal.
Gannett is offering $12.25 in cash for each share of Tribune, a
63% premium to the stock's closing price Friday. Shares of Tribune
Publishing jumped 53% Monday to $11.50.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 26, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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