Tribune Publishing has stopped talking to Stewart Bainum after his Swiss billionaire partner in a bid for the Chicago-based group pulled out.
Tribune said it was “moving forward” with plans to be acquired by Alden Global Capital after being notified that Hansjörg Wyss had pulled out of the fully financed nonbinding $680 million offer made with Bainum, who is the chairman of Choice Hotels
Alden said it was “no longer allowed to have discussions and negotiations, or share information” with Wyss or Bainum, or their Newslight entity as it could “no longer can be reasonably expected to lead to a ‘superior proposal’ to the $633 million offered by Alden”.
Bainum had told Tribune’s special committee that Wyss remained interested in “assisting in a potential transaction to make it successful”.
Tribune says its agreement with Alden limits its ability to engage with Bainum on grounds which include “that he has not secured the necessary financing”.
The committee continues to recommend Alden’s $17.25 a share bid, but no date has yet been set for shareholders to consider it.
Tribune relocated its Chicago Tribune newsroom to its Freedom Center (pictured) beside the Chicago River at the end of January.