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Hedge fund Alden Global Capital, which already owns 32% of @mcall parent Tribune Publishing, wants to buy the Chicago-based newspaper chain, via @WSJ https://www.wsj.com/articles/alden-global-seeks-to-buy-tribune-publishing-11609390571
An SEC filing today says Alden delivered a non-binding proposal and inquiry letter to Tribune's board Dec. 14, offering to buy the company for $14.25 per share. Alden "has not proposed any specific structure for the transaction nor have they received any feedback from" Tribune.
The letter of intent, signed by Alden's Randall Smith (also on Tribune's board): "We believe that, as a private company, Tribune would be able to unlock significant strategic and financial value." He calls Alden an "investment firm focused on catalyst driven investing."
Alden says it can fully finance a purchase of the Tribune shares it doesn't already own with cash on hand. "We will have no financing conditions and will not require third party debt or equity to finance the Transaction."
"Therefore, we are confident that we can move forward with negotiating definitive documentation for the Transaction immediately, with the goal of entering into a binding material definitive agreement within two to three weeks," Smith says.
Smith wants Tribune to establish a special committee to review Alden's proposal and vows not to move forward with a deal unless it is approved and recommended by that committee. Any deal also would need approval from Tribune's remaining shareholders https://investor.tribpub.com/node/10416/html
