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Tribune Publishing adopts poison pill to stop Gannett

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Staff writer ▼ | May 9, 2016
Tribune Publishing said its board had adopted a shareholder rights plan, a "poison pill", in a bid to thwart Gannett's unsolicited takeover offer.
LA Times
Acquisition   "Gannett will not succeed"
The rights will become exercisable after a group buys more than 20 percent of Tribune Publishing's shares.

If the rights plan is triggered, Tribune shareholders will get the number of shares having a market value of two times the exercise price of the right.

Gannett made a takeover bid for Tribune last month at $12.25 per share in cash, valuing the publisher of the Chicago Tribune and the Los Angeles Times at about $815 million. Tribune rejected the offer last week.

"Our board is unanimous that Gannett will not succeed with its current tactics and low ball price," Tribune CEO Justin Dearborn said.

Instead of negotiating a mutually agreeable deal, Tribune is "putting up another roadblock to prevent its stockholders from realizing compelling, immediate and certain cash value for their investment," Gannett said in an emailed statement.