Media

Tribune Publishing shares jump as shareholders revolt

Some 41 per cent of withhold votes to re-elect chief Justin Dearborn and chairman Michael Ferro

The Los Angeles Times building in downtown Los Angeles. Photograph: Emily Berl/The New York Times
The Los Angeles Times building in downtown Los Angeles. Photograph: Emily Berl/The New York Times
Tue Jun 07 2016 - 01:00

Shares in Tribune Publishing jumped more than 16 per cent yesterday after it was revealed that more than 40 per cent of the company's shareholders withheld support for its board, which has tried to block a takeover by rival Gannett.

About 41 per cent of shareholders withheld their votes to re-elect chief executive Justin Dearborn and chairman Michael Ferro at the company's agm last week, according to a regulatory filing yesterday.

The results added pressure on Mr Ferro to negotiate with Gannett, owner of USA Today, which has offered to buy the smaller newspaper publisher for $15 a share – double the stock's value two months ago.

Mr Ferro has rebuffed Gannett’s advances as not being in the best interests of shareholders and accused its rival of “playing games”.

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– (Financial Times Service)