Here's the word from Linda

Here are the headlines for a Gloria Irwin piece on the BJ business front on Saturday.

Union sees bright side of KR sales
Newspaper Guild says employee ownership may happen someday

Newspaper Guild president Linda Foley's goal of creating employee-owned newspapers was outbid in the recent auction of Knight Ridder Inc. newspapers, but she said Friday that she believes the strategy may work in the future.

The Guild supported private equity firm Yucaipa Cos. of Los Angeles in bidding for the Akron Beacon Journal and other papers sold off as part of McClatchy Co.'s $6.5 billion takeover of Knight Ridder. Yucaipa had agreed that it would turn the newspapers into employee-owned companies. Yucaipa lost all of its bids.

``My prediction is that someday (employee ownership) will happen,'' Foley said.

Yucaipa lost ``because others were willing to pay more,'' Foley said.She said she had not yet been able to talk with Yucaipa.

The union spent $175,000 to retain Duff & Phelps Securities LLC. of Chicago and Ownership Associates Inc. of Cambridge, Mass., to advise it on what are commonly called ESOPs, or employee stock ownership programs, Foley said.

Yucaipa, controlled by billionaire Ron Burkle, signed an alliance with the Guild in February, agreeing to provide the purchase money.

Foley questioned whether Yucaipa got the same consideration from Sacramento-based McClatchy as other bidders did.

Gary Pruitt, chief executive of McClatchy, said the bidding was conducted fairly and he had not heard any criticism from Yucaipa.

Click on the headline to read all of Irwin’s story

Blogger’s endnote: Were you expecting sale by a newspaper publisher to a newspaper union?