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Group led by ex-alderman set to acquire Chicago Sun

Group led by ex-alderman set to acquire Chicago Sun

In a odd twist, the former owner of Wrapports is current Tronc Chairman Michael Ferro, who was said to have donated his Wrapports shares to a charitable trust when he assumed control of Tronc, the Sun-Times reported. But a source involved in the transaction said the purchase price of Wrapports was only $1, the Sun-Times reported.

"We believe in protecting the institution of journalism itself as well amplifying the diversity of voices and perspectives of Chicago stories, both locally and nationally", said CFL President Jorge Ramirez, who will serve as chairman of the newspaper and who noted the city's strong union roots. ST Acquisition Holdings is spearheaded by Edwin Eisendrath (D), a former Chicago alderman.

An investment group led by a former Chicago alderman and a coalition of labor unions has acquired the Chicago Sun-Times.

Eisendrath came forward with a bid to buy the Sun-Times after owner Wrapports LLC announced it would enter into discussions with Tronc Inc., which owns the rival Chicago Tribune, to acquire the newspaper.

In addition to the Chicago Federation of Labor, the other Chicago-based labor organizations that will be shareholders of the company are: LIUNA Chicago Laborers' District Council, Chicago Regional Council of Carpenters' Labor & Management Committee, Service Employees International Union Healthcare Illinois, Indiana, Missouri & Kansas, and SEIU Local 1.

Wrapports has an annual $25 million contract with Tronc to print and distribute the Sun-Times.

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Tronc said in a statement it expects the new Sun-Times owners to honor the printing and distribution deal.

Experts called the deal rare, particularly with labor union involvement, something that would be heightened even further in union-friendly Chicago. "The additional acquisition of Answers Media will allow us to expand and contemporize these channels with high-quality multimedia content and innovative technology solutions that will attract a broad audience of new readers and advertising partners".

The move will save the Sun-Times an unspecified amount that Eisendrath termed "significant".

"It's a great town as you know and it will continue to have two great newspapers", Eisendrath said on Twitter. Thus, it leaned toward the ST Acquisition Holdings offer, as long as the group could show it had the necessary operating funds to keep the papers as going concerns.

Chicago Sun-Times, the city's oldest continuously published daily and victor of eight Pulitzer prizes, has been sold to an investor group, reportedly for $1.

Details of the deal weren't disclosed, including the complete list of investors.