NEW YORK (TheStreet) -- Tribune Publishing (TPUB) stock is retreating 8.64% to $13 in pre-market trading on Monday after the newspaper publisher rejected Gannett's (GCI) $864 million takeover proposal.
Gannet stock is unchanged at $16.12 this morning.
Tribune's board rejected Gannett's second offer of $15 per share because it was "not in the best interest of Tribune shareholders," the company said in a statement. The board did propose to engage in private talks with Gannett about a potential transaction.
"Regardless of the outcome of the discussions with Gannett, we are confident that we have the right strategic plan in place to leverage technology and effectively monetize our world class content," Tribune CEO Justin Dearborn said in a statement.
Additionally, Chicago-based Tribune, the parent company of the Chicago Tribune and Los Angeles Times, will receive a $70.5 million growth capital investment from Nant Capital in exchange for 4.7 million shares. The shares will be subject to a three-year lock up period.
Nant Capital founder Patrick Soon-Shiong will join Tribune's board as vice chairman, effective June 2.
Separately, Tribune Publishing has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's generally strong cash flow from operations, which offsets deteriorating net income, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: TPUB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.