Reports from Wednesday evening were confirmed today as Alden Global Capital offered to buy control of Tribune Publishing. In a regulatory filing, Alden states they will take Tribune private. They see the potential to “unlock significant strategic and financial value” in the deal.
The Offer and the Team
Alden offers to buy all common stock not already owned by them for $14.25 a share. This is a 32% premium to the volume weighted price of Tribune’s stock over the past year.
Alden is working with a team of advisors. Moelis & Company are legal advisors. Akin Gump Strauss Hauer & Feld LLP are legal counsel. They are confident they can fully finance the transaction with the cash they have on hand. No third part debt or equity will be necessary.
Conditions have been made clear by Alden. They insist Tribune establishes a special committee of independent members of the Board. They would review the proposal and assess whether it is in the best interests of Tribune and its shareholders.
The deal should also be required to be approved by those who hold the two thirds of Tribune stock not held by Alden.
Thirdly, Alden will not coerce other stockholders to vote in favor of the deal.
With these conditions in place, Tribune and its shareholders will be able to independently assess Alden’s offer.
Stronger Together
Alden owns MediaNewsGroup, which operates 200 publications. Titles include the Denver Post, Mercury News, Orange County Register and Boston Herald.
Tribune, briefly known as tronc, is a media company which owns local media businesses in eight markets. Tribune newspapers include the Chicago Tribune, New York Daily News, Baltimore Sun and Orlando Sentinel.
Together, Tribune and Alden would control media properties in half of the top 10 markets in the United States. This includes the three biggest media markets in the country, New York, Los Angeles and Chicago.
