A few weeks ago, New York hedge fund Alden Global Capital LLC was about to acquire Tribune Publishing Co. – home to the Chicago Tribune, the Baltimore Sun and other US subway newspapers – without anyone standing in the way.
He then offended one of his partners in the deal, triggering a battle that could help shape the future of local news in America.
Maryland hotel mogul Stewart Bainum Jr. has entered into a side agreement with Alden CEO Heath Freeman to buy the Sun, a work Mr. Bainum grew up reading. Then, in Mr Bainum’s view, Alden tried to increase the cost of a tax deal that would substantially increase the price, people close to the situation said.
Mr Bainum told his advisers late on Friday afternoon, March 12, that he was worried he could no longer trust Alden, according to someone familiar with the matter.
That evening, the 74-year-old took the phone with his bankers and decided to try an amazing 11-hour move: his own offer for the entire company, which he announced by the end of the weekend.