NEW YORK (TheStreet) -- Shares of Tronc (TRNC) were diving 26.24% to $12.54 on heavy trading volume late Thursday afternoon as banks financing its possible deal to be taken over by Gannett (GCI) have backed out, Bloomberg reports, citing sources.
The two newspaper companies had agreed to a transaction price of about $18.75 per share, but a number of lenders withdrew due to concerns regarding the health of the two companies' businesses at that valuation, the sources added.
Gannett is the owner of USA Today and more than 100 daily newspapers. Tronc owns the Los Angeles Times, the Chicago Tribune and other publications.
Discussions between the two companies are continuing, Bloomberg noted.
More than 1.28 million of Tronc's shares have traded so far today vs. its average 30-day volume of 191,254 shares.
Shares of Gannett were tumbling 16.16% to $8.30 late this afternoon. Earlier today, the company posted third-quarter earnings that missed analysts' expectations.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance and increase in net income.
But the team also finds weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins.
Recently, 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 articles's author.
You can view the full analysis from the report here: TRNC