A hedge-fund-backed media group known for buying up struggling local papers and cutting costs has made an offer for USA Today publisher Gannett Co.

MNG Enterprises Inc., one of the largest newspaper chains in the country, has quietly built a 7.5% position in Gannett’s stock and is urging the McLean, Va., publisher to review its strategic alternatives, including a potential sale. It also is calling on Gannett to commit to a moratorium on digital investments.

On Monday, MNG, better known as Digital First Media, said it was offering $12 a share for Gannett, a 23% premium over Friday’s closing price of $9.75. The shares, which fell steeply last year, have been rising lately. The Wall Street Journal first reported Digital First’s plans on Sunday.

In a letter to Gannett’s board, MNG said the team leading Gannett hasn’t demonstrated that it is capable of effectively running the company, citing how it has lost 41% of its value since its debut as a public company two and a half years ago.

Closely held Digital First is known for its contentious history with the newspaper industry in part because of its penchant for slashing costs. It said it has over the past few years made multiple approaches to Gannett about a deal but has been rebuffed.