Newspaper sale called off

We were right with our call that Tribune Company would not be completing its 73 million bucks sale of two Connecticut newspapers to Gannett anytime soon, after an arbitrator ruled that Tribune could not close the sale unless Gannett assumed the existing United Auto Workers union contract for employees at the Advocate of Stamford, CT. In fact, the deal is not going to close at all. Gannett has refused to do the deal if it has to accept the union contract, so the companies announced Friday that the deal has been terminated. Tribune says it will seek another buyer for the Stamford daily and the Greenwich Time.

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