Tronc's Drama Never Ends

Tronc Inc., the newspaper publisher with a flair for the dramatic, is at the center of yet another power struggle. Once again, shareholders may wind up as collateral damage.

Late Thursday, Tronc disclosed that it had struck a deal to neutralize Oaktree Capital Management, one of the most outspoken critics of its just-say-no campaign last year against would-be acquirer Gannett Co., by buying out its remaining shares and locking up a standstill provision. As the cherry on top, Tronc agreed to let Chairman Michael Ferro increase his stake to 30 percent -- well above the 20 percent threshold outlined in the shareholder rights plan the company adopted last May. This comes as Tronc boots its second-largest holder, biotechnology billionaire Patrick Soon-Shiong, off the board.

There's a lot going on here but the effect is twofold: First, Tronc has just made it significantly more difficult for Gannett or any other buyer to try again for a deal. But also, the boardroom dispute clouds its proposition for creating more value on its own than what Gannett had offered.