Tribune gets $70.5 million investment, rejects Gannett offer

Mon May 23, 2016 9:31pm EDT
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(Reuters) - Tribune Publishing Co TPUB.N, owner of the Los Angeles Times and the Chicago Tribune, said Los Angeles billionaire Patrick Soon-Shiong has invested $70.5 million in the company, becoming its second largest shareholder.

Tribune also rejected Gannett Co Inc's (GCI.N: Quote) latest takeover offer of $15 per share, but said on Monday that it would allow Gannett, the publisher of USA Today, access to some confidential corporate information. Reuters first reported the news Sunday.

Tribune's shares closed down 15 percent on Monday.

Soon-Shiong, through his fund Nant Capital LLC, will hold about 12.9 percent in Tribune and join the publisher's board as vice chairman on June 2.

Soon-Shiong, a South African-born surgeon, is part-owner of the Los Angeles Lakers basketball team and a founder of two drug companies, which he sold for a total of $8.6 billion.

Nant Capital has also entered into a standstill agreement with Tribune, limiting its ability to raise its stake in the publisher.

Soon-Shiong is also chairman and chief executive of biotech company NantKWest Inc (NK.O: Quote) and is one of the highest paid chief executives in America. He took NantKWest public last June.


The Chicago Tribune building is seen in Chicago, Illinois, United States on April 24, 2013.   REUTERS/Jim Young/File Photo