Patrick Soon-Shiong, MD, is angling for a larger stake in Tronc, the newspaper publisher that owns the Chicago Tribune and Los Angeles Times, to gain more control as the company's nonexecutive chairman Michael Ferro, Jr., increases his stake, according to a report in The New York Times.
Tronc elected to raise the limit Mr. Ferro could acquire from 25 percent to 30 percent of the company's shares. Now Dr. Soon-Shiong, who serves as vice chairman, wants the cap on the stake he is allowed to buy to be raised to 30 percent as well, according to the report. His investment firm, Nant Capital, acquired about 13 percent of the company in May 2016, according to the report.
His request comes after Tronc agreed to buy back 3.75 million shares from Oaktree Capital. Tronc also moved the date of its annual meeting up by a month, effectively blocking Dr. Soon-Shiong from potential renomination as a director, according to the report.
In response, Dr. Soon-Shiong sent a letter to the company accusing it of "poor corporate governance," and requesting access to its books and records, according to The New York Times. In a response, Tronc said the letter was "filled with misstatements and baseless innuendo," according to the report.
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