Private equity flirting

But Tronc still tanks

Shares of Tronc, the embattled newspaper publisher, slid downward on Wednesday — despite chatter of a takeover.

The shares dipped 2.6 percent, to $15.40, even after a report that an unidentified private equity firm was zeroing in on an offer for the Chicago-based company — whose papers include the belt-tightening Daily News.

The PE firm was ready to bid $19 to $20 a share, according to Politico, which first reported on the talks.

The report cited only “industry rumblings” as the source.

“We’ve heard this before,” said Doug Arthur at Huber Research Partners. “The stock is not going to react until there is a real headline with a real buyer.”

Leon Black’s Apollo Global Management was said to have eyed Tronc as recently as April — but is now cool on a possible offer, sources said.

Back in the spring, Dr. Patrick Soon-Shiong was taking an awfully long time to close his $500 million deal to buy the LA Times and the San Diego Union-Tribune.

But that California newspaper deal — announced in early February — finally closed in June, enabling Tronc to wipe out more than $300 million in long-term debt.

Michael Kupinski at Noble Financial Capital Markets said interest in a deal may remain remote until Wall Street sees what kind of write-off Tronc takes for the downsizing at the Daily News, which this week cut half its newsroom staff.

A total of 93 people were pink-slipped at the Daily News on Monday, according to a state filing — one of the biggest downsizings in the 99year-old paper’ s history.

Tronc is making smaller cuts at other papers, it said.

“There’s a lot of private equity money looking for deals,” said Kupinski. “Tronc has a little bit of hair on it because of the cyclical decline in print and paper prices, but they have cash on the balance sheet and good cash flow.”

“It would not be a big purchase for a private equity firm,” said Arthur at Huber Research. “But I don’t think Tronc has articulated a clear strategy yet, other than showing an ability to eviscerate cost. You have to ask, what is private equity going to do that Tronc is not already doing?”