The Newspaper Guild-Communications Workers of America announced Wednesday that the investment firm of California supermarket magnate Ron Burkle will help finance its attempt to buy nine unionized Knight Ridder newspapers.
San Jose-based Knight Ridder, the nation's second-largest newspaper company and owner of the Mercury News, is exploring a sale under pressure from major shareholders unhappy with the company's performance. Knight Ridder has said it is interested only in selling the company -- which includes 32 daily newspapers -- as a whole. That would force the union to buy the nine papers from whoever acquires Knight Ridder, if a sale goes through.
Burkle's Yucaipa Companies will provide major financing for the union's efforts to buy the newspapers. The union would not say how much money Yucaipa will give. Additional financing would come from banks and other sources.
``Yucaipa can certainly put up enough money to finance the deal,'' said Guild President Linda Foley. ``There's no question now that the deal can be done.''
[Source: Pete Carey, The San Jose Mercury News]
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