Gannett’s media properties include USA TODAY, The Arizona Republic and The Detroit Free Press
By Philana Patterson | USA TODAY
Gannett Co. said Monday that its board has unanimously rejected an unsolicited proposal to be acquired by media company MNG Enterprises Inc., also known as Digital First Media, saying the proposal undervalues the company and the board doesn’t believe the offer is credible.
MNG on Jan. 14 offered to buy Gannett for $12 a share in cash, which at the time was a 23 percent premium above its most recent closing price of $9.75 a share. Gannett shares rose as high as $11.99 a share on Jan. 14, but closed Monday at $10.96, down 2.3 percent for the day.
“After careful review and consideration, conducted in consultation with its financial and legal advisers, the Gannett board concluded that MNG’s unsolicited proposal undervalues Gannett and is not in the best interests of Gannett and its shareholders,” the company said in statement. “In addition, Gannett does not believe MNG’s proposal is credible.”