Industry watchers are wondering what will happen with the
announced GateHouse buy of Gannett after MNG Enterprises, controlled by hedge
fund Alden Global Capital, acquired a 9.4 percent stake in New Media Investment
Group last week, as Gannett-owned USA Today reports.
GateHouse owner New Media is managed by
Fortress Investment Group, which is owned by Tokyo-based Softbank. MNG
attempted but did not succeed in a hostile takeover of Gannett recently.
An SEC filing from
MNG indicated it may vote against, campaign against or suggest alternatives to
the merger.
Also increasing his stake in New Media was
billionaire Leon Cooperman, whose investment has hit 9.9
percent. Cooperman is thought to favor the merger, USA Today indicated.
Meanwhile, the New York Post reported that
Tribune Publishing is mulling a $10-a-share cash bid for Gannett, citing a
well-placed source.
Tribune would make that move if Gannett’s
stock doesn’t top $10 a share.
Shares of both Gannett and GateHouse fell
after the companies announced their $1.38 billion proposed deal last week.
Analysts, including Ken Doctor at
Newsonomics, said Alden may be aiming to shed its newspapers or get MNG merged
with New Media or Gannett.
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