Gannett In $815m Buyout Bid For Rival Tribune

US newspaper publisher Gannett (Frankfurt: 1G4.F - news) has made an $815m (£562m) offer to buy rival Tribune Publishing.

The proposed deal would give Gannett, the owner of USA Today, a fresh arsenal of US papers, including the Los Angeles Times and the Chicago Tribune.

Tribune Publishing confirmed on Monday it had received the unsolicited offer, saying it would "respond to Gannett as quickly as feasible".

Gannett said its rival has so far refused to hold "constructive discussions" about the proposed buyout since it was first offered earlier this month.

The Virginia-based publisher said it offered $12.25 in cash for each Tribune share - a 63% premium to Tribune's closing price of $7.52 on Friday.

The offer would include Gannett assuming some $390m of Tribune's outstanding debt.

Gannett wants Tribune's properties to help boost its USA Today Network, which launched late last year.

The network aims to unite the national USA Today brand with the company's more than 100 local daily newspapers.

The Tribune buyout would bring 11 new newspapers into the Gannett fold.

Earlier this month, the publishing giant paid $280m to buy the Journal Media Group, adding 15 newspapers to its portfolio.

Tribune shares jumped $4.22, or 56%, to $11.74 in early morning trading on Monday.

Gannet Co shares were up $0.96, or 6%, to $16.73 by early afternoon.