Tribune shareholders approve Alden Global's take-private deal
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(Reuters) -Tribune Publishing Co said on Friday shareholders had approved its proposed acquisition by hedge fund Alden Global Capital LLC.
The take-private deal, gives Alden full control of Tribune’s newspapers such as the Chicago Tribune and the New York Daily News.
As per terms of agreement, expected to close by May 25, Alden will acquire all of the outstanding shares of Tribune common stock not currently owned by it for $17.25 per share in cash.
The New-York-based hedge fund, known for its hostile takeover bids of publishing companies, owns a near 32% stake in Tribune, making it the publishing company’s largest shareholder.
Earlier in March, Tribune also received a superior offer of $18.50 per share from Newslight, owned by Choice Hotels International Inc Chairman Stewart Bainum and Swiss billionaire Hansjörg Wyss. However, Tribune’s board recommended shareholders to vote in favour of Alden’s bid.
Shares of Tribune, which also owns the Baltimore Sun, has gained nearly 26% this year.
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