Tronc's best shareholder terminates sale of stake to McCormick Media

Tronc's top shareholder terminates sale of stake to McCormick Media

(Reuters) - Newspaper publisher Tronc Inc's (TRNC.O) top shareholder said in a filing here on Wednesday that it had terminated the sale of a stake in the company after the prospective buyer, investor group McCormick Media, breached its obligations.

FILE PHOTO: The logo of Tronc Inc (TRNC.O), formerly Tribune Publishing Company, is seen at TechFair LA, a technology job fair, in Los Angeles, California, U.S., January 26, 2017. REUTERS/Lucy Nicholson

Former Tronc chairman Michael Ferro Jr’s fund Merrick Venture Management, which owns 25.6 percent of Tronc, agreed in April to sell its stake to McCormick Media for $208.7 million.

The agreement between the companies was reached after Ferro stepped down from Tronc’s board in March, just as the Chicago Tribune parent prepared to close a $500 million sale of the Los Angeles Times to billionaire investor Patrick Soon-Shiong.

Selling parties named on the agreement, including Merrick Venture Management, Merrick Media and Ferro, did not provide details of McCormick’s alleged breach of terms.

McCormick Media did not immediately respond to Reuters’ request for comment.

Reporting by Tamara Mathias in Bengaluru

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July 29, 2018