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Breaking News from CNBC's David Faber: Gannett Not Ready to Drop Tribune Bid – Sources

WHEN: TODAY, MONDAY, June 6, 2016

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is breaking news from CNBC's David Faber on "Squawk on the Street" today. All references must be sourced to CNBC.

DAVID FABER: LET'S GET TO REPORT THIS MORNING OF COURSE TRIBUNE AND GANNETT, REMEMBER THAT FIGHT? IT CONTINUES. IN FACT THIS AFTER THE ANNUAL MEETING OF TRIBUNE SHAREHOLDERS LATE LAST WEEK. WHAT I CAN TELL YOU THIS MORNING IS GANNETT NOT QUITE READY TO HANG IT UP DESPITE OF COURSE WHAT DOESN'T APPEAR TO BE ANY PATH THAT IT HAS TO TRY TO ACTUALLY ARREST CONTROL OF THE BOARD OF DIRECTORS DESPITE AS IT CURRENTLY STANDS THIS DEPITE WHAT WAS A VERY HEAVY WITHHOLD OR NO VOTE FOR THE DIRECTORS OF TRIBUNE. THE REPORTS OUT FROM TRIBUNE ITSELF SAY ROUGHLY 40% AGAINST. BUT WHEN YOU SPEAK TO GANNETT, AND THEY INCLUDE THE – OR ACTUALLY EXCLUDE MICHAEL FERRO THE COMPANY CHAIRMAN'S STOCK, THEN IT RISES TO MORE THAN 50% OF WHAT YOU MIGHT CALL THE UNAFFILIATED SHAREHOLDERS OF TRIBUNE VOTING AGAINST THE CURRENT BOARD OF DIRECTORS AS MUCH AS I THINK 58% I'M TOLD AGAINST THREE OF THOSE DIRECTORS, EDDY HARTENSTEIN, DIBL AND FRANKLIN HAD 58% AGAINST. WHAT ALL THIS MEANS GANNETT STILL DOESN'T HAVE A PATH BUT PEOPLE CLOSE TO THE SITUATION TELL ME THE COMPANY'S NOT READY TO JUST DROP ITS BID YET AT $15 A SHARE. YOU CAN SEE TRIBUNE SHARES TRADING RIGHT AROUND 11, LET'S CALL IT 11.50. THAT DOES NOT MEAN AT SOME POINT GANNETT IS NOT GOING TO GO HOME. BUT AT LEAST THEY'RE NOT READY TO YET. THERE'S SOME LITIGATION ALREADY TAKING PLACE IN DELAWARE AGAINST THE BOARD FOR DOING A DEAL TO SELL STOCK AT $15 A SHARE TO DR. PATRICK SOON-SHIONG. ACTUALLY WE HAD HIM AS A GUEST ON FRIDAY AND ASKED HIM ABOUT THAT, HE WASN'T AWARE OF THE LITIGATION WHEN WE ASKED HIM ABOUT IT. THERE MAY BE MORE LITIGATION YET TO COME IN DELAWARE TRYING TO INVALIDATE THE SALE OF SHARES TO MR. FERRO HIMSELF SOME TIME BACK WHERE HE BOUGHT WHAT GANNETT CLAIMS WAS ESSENTIALLY ENDED UP BEING A CONTROL POSITION AT 8.50 A SHARE BECAUSE HE WAS ABLE TO, THEY CLAIM, TAKE CONTROL OF THE BOARD OF DIRECTORS. AND ON FRIDAY YOU ALSO HAD GANNETT SHAREHOLDER -- I'M SORRY, TRIBUNE SHAREHOLDER, OAK TREE, ONE OF THE LARGEST SHAREHOLDERS FILE A 13D IN WHICH IT SAID THAT THEY WOULD BE WILLING TO SELL THEIR SHARES AT $15 A SHARE. THEY SAY LET THERE BE NO DOUBT WE WOULD BE WILLING TO SHARE AT $15 A SHARE. THEY ALSO SAY TRIBUNE'S SUGGESTION THAT OAK TREE SUPPORTS THE BOARD'S CURRENT POSTURE IS PATENTLY FALSE AND MISLEADING. AND GO ONTO SAY THEY BELIEVE ALL SHAREHOLDERS SHOULD BE AFFORDED THE OPPORTUNITY TO SELL THEIR STOCK AT $15 IF THE ONLY ALTERNATIVE IS TO RELY ON THE CONTINUED LEADERSHIP OF THE COMPANY BEING IN MR. FERRO'S HANDS. MICHAEL FERRO WAS A GUEST ON "SQUAWK BOX" THIS MORNING. AND THIS IS WHAT HE HAD TO SAY ABOUT THAT $15 PRICE AND THE FUTURE OF A COMPANY HE IS RENAMING TRUNK.

SOUND FROM FERRO ON CNBC'S SQUAWK BOX TODAY:

IT'S A $15 PRICE WE ACTUALLY TOLD GANNETT WE HAD INVESTORS TO COME IN AT $15 WHEN THEY WERE AT $12.25. THAT'S WHY THEY WENT TO $15. WE SAID WE HAVE PEOPLE WILLING TO INVEST, WHICH IS DIFFERENT THAN A TAKEOVER WHICH IS A PREMIUM. WE HAVE PEOPLE WILLING TO INVEST, MINORITY SHAREHOLDER TO BRING TECHNOLOGY TO US AND WE HAD MULTIPLE PARTIES WE WERE TALKING TO DR. SOON-SHIONG AND NAN CAPITAL WAS ONE PARTY WE WERE TALKING TO . BECAUSE PEOPLE BELIEVE THAT OUR ASSET IF WE BRING SOME TECHNOLOGY TO IT IS GOING TO BE WORTH FAR MORE MONEY.

FABER: WE WILL SEE. THE WINDOW TO NOMINATE BOARD OF DIRECTOR SLATE OPENS FEBRUARY 2nd OF NEXT YEAR.

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