Heath Freeman, the boss of private equity firm Alden Global Capital, is throwing a wrench into the mega-merger between Gatehouse Media and USA Today owner Gannett.
In a bombshell disclosure Friday, August 9, it was revealed that MNG Enterprises, the newspaper group Alden controls, snapped up 9.4% of the stock of New Media Investment Group, which is poised to acquire Gannett. Shareholders can vote on the merger.
The Securities and Exchange Commission filing revealed that MNG may vote down or campaign against the plans to create the largest newspaper publisher in the country. New Media’s Gatehouse Media is the nation’s second-largest newspaper owner behind Gannett.
New Media announced on Monday that it plans to acquire USA Today owner Gannett. But MNG has previously made offers for Gannett that Gannett has turned down. So it looks like MNG’s purchase of a New Media stake might be a way for MNG to try and kill the Gannett deal. MNG was not immediately available for comment about when it bought its 5.7 million shares in New Media.
Full Content: CNN, New York Post
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