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MNG Enterprises offers to buy USA Today publisher Gannett

Reuters 

(Reuters) - Newspaper chain said on Monday it had offered to buy publisher Co Inc in a deal valued at $1.36 billion.

MNG said it will offer $12 per share, representing a premium of 23 percent to the company's close on Friday.

In a letter sent to Gannett's board, MNG said it had approached the company's board and management on multiple occasions about a potential combination, but had not "meaningfully engaged".

Gannett, whose shares rose 20 percent to $11.70 in trading before the bell, said it will review the proposal. MNG said it could also ask for changes to Gannett's board composition.

Faced with declining advertising and circulation revenue in the print media industry, Gannett has made significant investments in the

The company is also in the middle of finding a successor for its Robert Dickey, who is slated to retire in May this year.

MNG, which has a 7.5 percent stake in Gannett, opposed the latter's digital acquisition strategy and said a sale of the company is the best path forward. It also urged Gannett to hire an to conduct a review of options.

Also known as Digital First Media, MNG Enterprises is backed by hedge fund and is the publisher of the and

(Reporting by and in Bengaluru; Editing by Shounak Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 14 2019. 22:13 IST
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