Mumbai: Gannett Co. Inc, which owns USA Today, has refuted speculative press reports that the biggest US newspaper publisher is preparing for an ownership change.

Responding to a recent blog entry in The Wall Street Journal, Gannett CEO Craig Dubow said there is no basis in the report which suggested that changes to some employee compensation plans might well lead to the sale of the publisher itself.

In a memorandum to employees, Dubow said there is no move to divest shares of the company.

Gannett has been the subject of analyst speculation that it could go private.

Gannett, however, has been seeing a drop in advertising sales and paid circulation as readers migrated to the internet.

The Wall Street Journal's Deal Journal blog said a filing that Gannett had made with federal regulators had amended some employee compensation plans "with an eye toward a possible acquisition of the company."

"In the event of a change in control of the company, certain deferred compensation payments would be accelerated," the Journal said. "The amendments also would prevent retirement-plan changes brought on by any merger deal that would reduce benefits to employees."

Gannett shares rose as high as 2 per cent after news of the memo was made public.

The stock was up 43 cents at $47.77 on the New York Stock Exchange in late morning trading on August 10.