A Maryland hotel magnate and Swiss billionaire have made a bid for Tribune Publishing Co. that the newspaper chain is expected to prefer it to a takeover deal it has already signed with hedge fund Alden Global Capital LLC.
A special committee of Tribune’s board of directors determined that a bid of approximately $ 680 million, $ 18.50 per share, submitted late last week by Choice Hotels International Inc. chairman Stewart Bainum and Hansjörg Wyss, reasonably likely to lead to a proposal superior to Alden’s $ 635 million deal, people familiar with the matter said. That’s legal deal-speak, indicating that Alden will likely have to increase its offer or risk losing the deal.
The decision came after the two men stated that they plan to personally contribute more than $ 600 million together, compared to a total of $ 200 million, the people said.
Now that the group has submitted a fully funded offer, it will have access to private financial data to conduct due diligence and negotiate other terms, a big step towards completing an agreement that could replace Alden’s. they said. There is no guarantee that the group will succeed in this, and it is still possible that it could change its offer or walk away after reviewing the company’s finances.
If Alden loses the deal, it would mean a stunning 11-hour turnaround for the New York hedge fund and a major win for critics who say the aggressive cost-cutting model has hurt the local news industry. Alden had spent nearly a year and a half positioning to acquire Tribune, publisher of nine major daily newspapers, including the Chicago Tribune, New York Daily News, and the Baltimore Sun.