Tribune shareholder urges talks with Gannett

The second-largest shareholder of Tribune Publishing is publicly urging the newspaper company to begin discussions with Gannett Co., which has offered to buy Tribune for $815 million.

Oaktree Capital, the investment firm that owns about 15% of Tribune, said in a filing with the Securities and Exchange Commission on Wednesday that “it would be in the best interests of (Tribune) and its stockholders …to pursue discussions with Gannett to see if an acceptable agreement can be reached for Gannett to acquire (Tribune).”

On April 25, Gannett, which owns USA TODAY and 107 local news properties, revealed its offer to pay $12.25 per share for Tribune Publishing, which owns the Los Angeles Times, the Chicago Tribune and nine other dailies. Gannett also offered to assume $390 million of Tribune’s debt, bringing the total value of the deal to $815 million.

Shares of Tribune Publishing, which was spun off from Tribune Co. in 2014, rose Friday 5.4% to $11.63.

Tribune shareholders hold key in Gannett bid

Gannett’s offer was unanimously rejected by Tribune’s board Wednesday. But there have been reports that some shareholders are eager to see Tribune negotiate with Gannett or other prospective bidders. So far, no other bidder has emerged.

Oaktree confirmed the sentiment and said it expects to talk to other shareholders about Tribune’s plans regarding the offer.

“In addition, (Oaktree) believe(s) that (Tribune) should, in the event one or more other parties express an interest in acquiring (Tribune), be open to discussions with such parties regarding such an acquisition,” Oaktree said in the filing.

“Without limiting any of the above, (Oaktree) expect(s) to communicate with one or more significant stockholders of (Tribune) or other third parties about their respective views regarding (Tribune),” it said.