By Sara Merken
A group of investors led by former Chicago alderman Edwin Eisendrath has beaten out a bid by tronc Inc., the owner of the Chicago Tribune, to buy the Chicago Sun-Times.
The Justice Department announced late July 12 that it had closed its antitrust investigation into the potential merger of the Tribune and the Sun-Times. The DOJ was concerned that antitrust problems could arise with a merger that would have combined the only two major newspapers serving the Chicago area.
The investor group that will buy the ailing Sun-Times instead of tronc, called ST Acquisition Holdings LLC, includes the Chicago Federation of Labor, corporate restructuring specialist William Brandt, local labor unions, and other unnamed individuals, the Sun-Times reported July 12.
“This is a historic coalition of workers and like-minded investors who represent a cross-section of the Chicago population, coming together with one common goal: to preserve independent media entities in Chicago and protect their journalistic integrity. This effort amplifies the diversity of voices and perspectives of Chicago stories both locally and nationally,” said Jorge Ramirez, President of the Chicago Federation of Labor and Chairman of the Chicago Sun-Times, in a statement provided to Bloomberg BNA.
The DOJ announced the investigation of the merger on May 15, the same day the deal between tronc and Sun-Times’ owner Wrapports LLC was made public.
The investigation looked into whether the Sun-Times was a “failing firm,” in which the company must prove its efforts to keep its assets in the market through other offers were unsuccessful and it would go out of business if not sold to the sole prospective buyer.
The DOJ “monitored closely” as Wrapports sought alternative offers. The antitrust division initially requested a 15-day waiting period to allow the Sun-Times to receive alternative offers and then extended that time.
The purchase of Wrapports totaled $1, the Sun-Times reported. Other terms of the sale have not been disclosed.
To contact the reporter on this story: Sara Merken in Washington at email@example.com
To contact the editor responsible for this story: Fawn Johnson at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)