NEW YORK (AP) - Tribune Publishing says shareholders have elected the company's board, but hasn't yet released full results of the vote. Gannett, which has offered $864 million for the newspaper publisher, says the vote will help determine whether it continues its bid.
Tribune has been holding Gannett off , adopting a shareholder rights plan meant to make a takeover more difficult and bringing in a new big investor, Dr. Patrick Soon-Shiong, as an ally in its ambitious transformation project.
Gannett hopes that a significant percentage of shareholders voted against the Tribune board slate. It's a symbolic gesture, as there are no other candidates. But Gannett believes that a slew of votes against the directors could pressure Tribune Chairman Michael Ferro into a deal.
A spokesman of McLean, Virginia-based Gannett had no immediate comment.
Several large Tribune investors have already publicly urged Ferro to work on a deal with Gannett. One small investor filed suit against the Tribune board in the Court of Chancery in Delaware on Wednesday night, ahead of the vote. The investor, Capital Structures Realty Advisors LLC, said in its complaint that directors breached their duty by "refusing to negotiate with Gannett in good faith."
In a statement, a Tribune spokesman said the Chicago-based company is reviewing the complaint carefully.
Gannett wants Tribune so it can cut costs and sell more ads. But Tribune, with a chairman and CEO that just came on board this year, has its own plan to make the Los Angeles Times a global brand and use technology to squeeze more revenue from digital ads.
Tribune Publishing Co. shares fell 59 cents, or 5.1 percent, to $11 in afternoon trading Thursday. The stock is still up 46 percent since before Gannett announced its initial bid.
Gannett shares added 18 cents, or 1.2 percent, to $15.62.