Businessman Holding a Newspaper in a Finance Area

A month ago, four major newspaper chains were proudly announcing their founding of Nucleus Marketing Solutions. Today, one of the chains, Tribune Publishing, is threatening another, Gannett, with a “poison pill” strategy to prevent what would amount to a hostile Gannett takeover of Trib.

Tribune has charged that Gannett’s offer is a “low-ball price” that is a “desperate attempt to steal the company.” Gannett responded that the poison-pill strategy – under which Tribune would issue more stock to raise the cost of acquisition — “is yet another demonstration that Tribune’s board and management team are not listening to its stockholders.”

Gannett has offered to buy Tribune Publishing — whose major operations are the Los Angeles Times and the Chicago Tribune — for a net of $425 million after it paid off debt of $390 million.

Despite all their very public corporate feuding, the two companies have decided they need each other. Their alternative, which is never uttered out loud, is running

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Source: Street Fight