The board of Tribune Publishing recommended that shareholders approve a buyout offer from hedge fund Alden Global Capital on a high bid from a Maryland hotel executive, according to a securities filing on Tuesday.
Admission comes a week later Stewart W. Banam jr, A hotel magnate, offered $ 18.50 per share for the entire company. Mr. Bynum had initially agreed with Alden to spin the Tribune’s three titles – The Baltimore Sun and Two Small Maryland Papers – at a price of $ 65 million. But the conversation between Alden and Mr. Banyam Prohibition on details of operational agreements This would be in effect as the Maryland papers transitioned from one owner to another, prompting Mr. Banniam to bid to buy all the tribunes.
Alden, the Tribune’s largest shareholder with a 32 percent stake, agreed last month to buy the rest of the company at $ 17.25 a share and take it private in a deal that would cost the company $ 630 million. Alden will purchase all remaining papers of the company, including the Chicago Tribune and The Daily News.
Alden has been criticized for pruning journalists and shrinking local news coverage to at least 60 newspapers. The hedge fund says it is preventing local newspapers from going out of business.