Gannett-Tronc deal in doubt as banks pull financing

Banks financing Gannett Co.’s potential takeover of Tronc Inc. have backed out, people familiar with the matter told Bloomberg.

Several lenders reportedly withdrew over concerns with the deal price of $18.75 per share. The sources said lenders are worried about the health of the two companies’ businesses at that valuation.

Los Angeles Times owner Tronc's share plunged 28 percent in after-hours trading yesterday, the biggest drop in more than two years. USA Today owner Gannett shares fell 17 percent, the most since June 2015.

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