A few weeks ago, New York hedge fund Alden Global Capital LLC was about to acquire Tribune Publishing Co. —The home of the Chicago Tribune, the Baltimore Sun, and other U.S. subway newspapers — without anyone intervening.
He then offended one of his partners in the deal, and started a battle that could help shape the future of local news in America.
Maryland hotel mogul Stewart Bainum Jr. had drawn up a parallel agreement with Alden chief executive Heath Freeman to buy the Sun, a document Bainum grew up reading. Then, in Mr. Bainum’s opinion, Alden tried to increase the cost of a tariff agreement that would substantially increase the price, people close to the situation said.
According to a person familiar with the matter, on Friday, March 12, on the afternoon of Friday, March 12, Mr. Bainum told his advisers he was worried he might not be able to trust Alden.
That evening, the 74-year-old got on the phone with his bankers and decided to try an impressive eleven-hour play: his own company-wide offer, which he announced over the weekend. .