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Tribune Publishing adopts poison pill to stop Gannett

Chicago Tribune
Scott Olson | Getty Images
Chicago Tribune

Newspaper publisher Tribune Publishing said on Monday its board had adopted a shareholder rights plan — popularly known as a "poison pill" — in a bid to thwart Gannett's unsolicited takeover offer.

The rights will become exercisable after a group buys more than 20 percent of Tribune Publishing's shares.

Gannett, the owner of USA Today, made a takeover bid for Tribune last month at $12.25 per share in cash, valuing the publisher of the Chicago Tribune and the Los Angeles Times at about $815 million. Tribune rejected the offer last week.

Tribune has been urged by Oaktree Capital, its second largest shareholder, to negotiate with Gannett about a possible takeover.

CNBC contributed to this report.