Gannet raises the white flag. After months of futile attempts, the group that publishes the newspaper 'Usa Today' gives up on getting married to Tronc, who own the newspapers 'Los Angeles Times' and 'Chicago Tribune'. In a statement, Gannett "confirmed that he has been in discussions with Tronc regarding a potential transaction" and said he has "decided not to pursue an acquisition" of the former Tribune Publishing; the new name is given by the abbreviation of Tribune online content. In doing so, the group presents itself as a digital company in step with the times and not as a publisher with a long tradition in the printed press.
Gannett does not mention why he gave up his plans but in recent days there were rumors that the banks that had given their support had taken a step back. Gannett's investors appear pleased with the decision, as the stock climbed 5,5% pre-market to rally after last week's declines due to third-quarter accounts. Tronc shares instead recorded a drop of 29% to 8,51 dollars, below the 12,25 dollars per share in cash originally offered by Gannett in April (then the offer had risen to 15 dollars); the stock traded at $17 last week before press reports.
