Gannett Offers to Buy Britain’s Newsquest

Gannett Co., the U.S. media company that publishes USA Today, offered to buy British regional newspaper group Newsquest for about $1.5 billion in cash. Newsquest described the offer as “serious and fair,” but stopped short of urging shareholders to accept it. However, the offer already has the support of shareholders owning 51.7% of Newsquest, including Newsquest executive directors and U.S. investment firm Kohlberg Kravis Roberts & Co., which holds a 36% stake. Newsquest started looking for buyers earlier this year. Under the offer, Gannett would pay Newsquest shareholders $7.31 per share in cash for each Newsquest share. Shares in Arlington, Va.-based Gannett fell $2.75 to close at $70.69 on the NYSE.