=Gannett (GCI): Hedge fund-backed MNG Enterprises offers to buy the USA Today publisher for $12 per share

Newspaper chain MNG Enterprises said on Monday it had offered to buy USA Today publisher Gannett for $12 per share in cash, or $1.36 billion.

The price represents a 23 percent premium to Gannett's $9.75 close on Friday.

In a letter sent to Gannett's board, MNG said it had approached the company's board and management on multiple occasions about a potential combination, but Gannett had not "meaningfully engaged."

MNG, which has a 7.5 percent stake in Gannett, said it plans to hire an investment bank to conduct a review of options, including a potential sale of Gannett.

Better known as Digital First Media, MNG Enterprises is backed by hedge fund Alden Global Capital (founded in 2007; www.aldenglobal.com) and is the publisher of the Denver Post and San Jose Mercury News.

Gannett, which owns newspapers and websites across the United States, has been doing its best to transition away from legacy newsprint to digital subscriptions.