The Tribune says no to marriage with USA Today

The publishing group that controls the Los Angeles Times and the Chicago Tribune has rejected the offer made last week by Gannett, which publishes the newspaper USA Today. The Board of Tribune Publishing took the view that the tender offer price "undervalues the true value of the company" and therefore "it is not in the best interests of our shareholders." Gannett had made an offer of $ 12.25 per share value, recognizing a premium of 63% over the previous close.

For his part, expressed his dissent Gannett and Tribune states that the Board "has never wanted to have anything to do with us," citing statements by the CEO of Tribune, Justin Dearborn, on the day the bid was launched, when he was accused Gannett to have an "erratic behavior and unreliable". In addition, the publisher of USA Today points out that compensation, immediate and in cash, is "convincing" and accuses Tribune had not made any counterproposal.

Gannett has, however, already prepared a plan B, a strategy not usual in this kind of operation: to seek the accession of the other shareholders on the occasion of the renewal of the Board, which certainly will not help to make a turnaround, but only to send a clear message of dissent of members.