Tribune adopts shareholder plan to fend off Gannett

Associated Press

New York — In an attempt to fend off a takeover by USA Today owner Gannett, Tribune Publishing says it adopted a one-year shareholder rights plan.

Known as a “poison pill,” these types of plans are used to fight off hostile takeovers.

Gannett Co. offered to buy Tribune Publishing last month for more than $388 million. Chicago-based Tribune Publishing Co. rejected the deal last week, saying that Gannett’s offer was not enough for the company, which owns the Los Angeles Times and Chicago Tribune

Tribune Publishing’s plan, announced Monday, allows existing shareholders to buy preferred stock if a person or group acquires at least 20 percent of its stock.

A representative for McLean, Virgina-based Gannett Co. did not immediately respond to a request for comment Monday morning.