Tribune Publishing has thrown out Gannett's offer to buy it

Tribune Publishing has thrown out Gannett's offer to buy it for $815 million.

In a statement Wednesday, Tribune, which owns titles including the LA Times, said its board unanimously rejected Gannett's "opportunistic" offer.

"The Board believes that the price reflected in the Proposal understates the Company's true value and is not in the best interests of our shareholders," Tribune CEO Justin Dearborn wrote in a letter to Gannett.

Gannett publisized its proposal to buy Tribune for $12.25 a share in cash on April 25.

Tribune shares jumped 4% in after-hours trading. The company also reported first-quarter results that showed it swung to a loss totaling $6.5 million.

And that's probably why Gannett, the publisher of USA Today, wants to buy Tribune. Gannett chairman John Jeffry had said the combined firm would of course help his publications, but also help Tribune thrive in a "challenging environment" for the newspaper industry.

More to come ...