As a deadline nears for submitting bids for Knight Ridder, MediaNews and Gannett are working on a joint bid, according to a source familiar with the process.
Sources said the Sacramento-based McClatchy newspaper chain also is preparing a bid.
Knight Ridder has set March 9 as the deadline for potential buyers to submit bids, according to several sources. The San Jose company, which is the nation's second-largest newspaper company and owner of the Mercury News, put itself up for sale under pressure from shareholders. It is expected to announce a decision about whether to sell in mid-March.
Making a play for Knight Ridder is more complicated for the two teams of private equity firms who have entered the bidding process. These companies have less ability to cut costs than a media buyer. For instance, a media company could eliminate Knight Ridder's corporate staff and rely on its own staff while a private equity firm would need to retain or replace such operations.
Texas Pacific, Thomas H. Lee and Hellman & Friedman are “still evaluating” a bid but are expected to make an offer for Knight Ridder, according to industry sources. The Blackstone Group, Providence Equity Partners and Kohlberg Kravis Roberts have not made a decision about whether to bid, according to industry sources.
Click on headline to read full story by Pete Carey, The San Jose Mercury News
Knight Ridder's corporate charter requires that any buyer be reviewed by the panel, which will advise the board of directors as to whether a new owner will continue Knight Ridder's ``journalistic excellence.''
ReplyDeleteI think the "journalistic excellence" train already has left the station.
Do I hear John Knight spinning rapidly over that statement?
I learned a couple days ago that the lead partner in one of the investment companies (Vestar Capital) is my wife's cousin. He's working with Gannett and MediaGeneral on their bid. The guy's name is Dan S. O'Connell. Good Irishman from the Bronx who went to Brown on an athletic scholarship. I think his father was a tailor or worked in retail. Anyway, I've half a mind to send him a photo of the old BJ Bombers softball team to put a face on the deal he's working on. Anything for sympathy.
ReplyDeleteLarry Froelich
(859) 227-6376
larry:
ReplyDeleteperhaps a list of all the pulitzers won by the bj and the rest of the knight papers might help..along with a history of the KNIGHT papers and the success they had until ridder got hold of them.