Controversial hedge fund Alden wins bid for Tribune Publishing
After the failure of an 11th-hour push to find an alternative buyer, Tribune Publishing shareholders on Friday approved the $633-million sale of the newspaper chain to the New York hedge fund, Alden Global Capital.
Long before Alden’s proposed purchase of the company was announced in mid-February, local news proponents had been scrambling to recruit deep-pocketed investors to buy the nine newspapers, including the Chicago Tribune, New York Daily News and Orlando Sentinel. The hedge fund is known for hollowing out newsrooms to boost profits.
Tribune Publishing union members held rallies and lobbied Dr. Patrick Soon-Shiong, the second-largest Tribune shareholder and owner of the Los Angeles Times, to help finance the buyout or use his shares to block Alden’s bid for the chain.
Soon-Shiong did not cast a vote, his spokesperson Hillary Manning said.
There was immediate confusion Friday over whether Soon-Shiong’s non-participation tipped the vote in favor of Alden. A proxy statement filed by Tribune said Soon-Shiong’s vote in favor of the transaction was required.
Representatives of Tribune did not respond to questions about about the vote.
Alden offered $17.25 a
