Trading of Tronc shares was temporarily halted Thursday after a report that banks potentially involved in Gannett's effort to acquire the Chicago-based newspaper company had pulled out, sinking the stock of both companies.

Citing people familiar with the matter, Bloomberg reported Gannett was set to acquire Tronc for about $18.75 per share, but several lenders withdrew from the deal over concerns that the valuation was too high.

Shares of Tronc, which publishes the Chicago Tribune, fell nearly 30 percent to an intraday low of $11.78, prompting a trading halt.