Feder: Alden Global Capital regains upper hand in bid for Tribune Publishing
With the collapse of a competing offer for the parent company of the Chicago Tribune over the weekend, it's full speed ahead for Alden Global Capital in its bid to acquire complete control of Tribune Publishing, Robert Feder writes.
Swiss billionaire Hansjörg Wyss withdrew his participation in a $680 million bid for Tribune Publishing with Maryland hotel executive Stewart Bainum Jr. through their newly formed Newslight LLC. After examining Tribune Publishing finances, Wyss backed out.
While Bainum is said to remain committed to pursuing ownership of the company with other investors, Wyss's withdrawal effectively scuttles the deal, as far as the Tribune Publishing board is concerned. That leaves the $635 million offer of New York-based hedge fund Alden Global Capital as the only one standing.
On Monday Tribune Publishing issued a press release headlined: "Tribune Publishing Special Committee Determines April 1 Proposal From Stewart Bainum and Hansjörg Wyss No Longer Reasonably Expected to Lead to a 'Superior Proposal' . . . Definitive Binding Merger Agreement With Alden Global Capital Remains in Place; Tribune Board Continues to Recommend That Stockholders Vote in Favor of Its Approval."