• by Erik Sass , Staff Writer @eriksass1, May 23, 2016

The term “hostile takeover” isn’t one you hear applied to the newspaper industry nowadays, but it seems like a fair description of Gannett’s contentious buyout offer for Tribune Publishing, which the latter has now rejected twice.

This week, Tribune also revealed it is digging in for a lengthy battle by bringing in a new investor, Nant Capital, owned by billionaire Patrick Soon-Shiong, in hopes this new ally will help fend off Gannett’s unwanted attentions.

On Monday, Tribune announced that it has rejected Gannett’s second offer, which would have paid $15 per share for a total price of $864 million, including the assumption of about $385 million of debt.

Tribune CEO Justin Dearborn dismissed the latest bid as “clearly inadequate as a control investment in Tribune,” in a rebuff to Gannett but also Oaktree Capital, one of Tribune’s largest shareholders, which last week urged the company’s management to consider the second, higher offer.

At the same time Tribune unveiled Soon-Shiong’s purchase of 4.7 million shares of Tribune at the same price offered by Gannett – $15 per share – for a total stake valued at $70.5 million. That deal gives Nant Capital a 12.9% stake in Tribune, making it a close rival to Oaktree, the second-biggest shareholder with 14.8%.

According to Tribune Nant’s investment will help fund the company’s tech-heavy “transformation strategy”; Soon-Shiong will also be named vice-chairman of the Tribune board.

Tribune’s management previously rejected Gannett’s offer of $12.25 per share, first tendered May 4, and in the latest announcement expressed “serious doubts” about Gannett’s plans for the company. However it also struck a conciliatory note, raising the possibility of further negotiations on the condition that both sides sign a non-disclosure agreement.

In a bizarre turn of events, last week, newspaper guru Ken Doctor reported that Tribune chairman Michael Ferro is working on a counterbid whereby Tribune would acquire Gannett, which is currently worth around $1.9 billion.

The Tribune board has already warned that it will implement a “poison pill” defense against Gannett, supposedly in protection of shareholder rights. In this scenario, Tribune would offer additional preferred shares to existing shareholders at a discount if any entity tried to acquire more than 20% of the company.