Hopefully that will happen and the NYT stocks take even more of a hit.
Posted on 03/08/2006 2:20:33 PM PST by abb
NEW YORK The Newspaper Guild's "worker friendly" plan to buy nine Knight Ridder papers is still in the works even as the deadline for bids looms.
However, don't expect the Newspaper Guild to be named tomorrow as a possible buyer, said Linda Foley, the Guild's president, in a prepared statement released this afternoon. "While we have had substantial discussions with each of the potential bidders, we have not, nor did we expect to, reach an agreement with any of the bidders prior to March 9th."
The Newspaper Guild is positioning itself as a sidecar to those other players making bids for the nation's second largest newspaper chain. McClatchy, MediaNews Group, Gannett, and a group of private equity firms lead by Thomas H. Lee Partners are reportedly interested parties. Knight Ridder executives have said they will not break up the company in a sale most probably due to capital gains taxes.
"Our continuing conversations with bidders will likely intensify after the March 9 Knight Ridder announcement," Foley said.
The Guild has lined up the Yucaipa Companies to finance a deal to help employees buy nine Knight Ridder papers through an Employee Stock Ownership Plan (ESOP). If the Guild were successful, the deal would probably be structured with Yucaipa fronting some of the money for the papers.
"When it comes time to the Guild's participation, money talks," said industry analyst John Morton about the possible success of the Guild's plan. "It really becomes a question of what sort of corporation the Guild is willing to engage in."
He cites Gannett, for example, as being hostile to unions: "They might not welcome the Guild as a partner."
The nine newspapers affected by the Guild's plan are the Akron Beacon Journal, the Duluth News Tribune, the Grand Forks Herald, the Lexington Herald-Leader, The Monterey County Herald, The Philadelphia Inquirer and Daily News, the St. Paul Pioneer Press, and the San Jose Mercury News. The papers have a combined employment of 7,000 people.
Jennifer Saba (jsaba@editorandpublisher.com) is associate editor for E&P.
The Akron Beacon Journal is one of the most leftwing newspapers around. What a blessing if it went under.
Just a little info on the company putting this package together: California investment firm Yucaipa Companies:
The Yucaipa Companies LLC - Information & Fact Sheet - Hoover's
Yucaipa has a hungry eye for picking out ripe bargains in different industries, but made its name with grocery stores. The investment company forged its reputation as the ultimate grocery shopper,... Bill Clinton and the Rev. Jesse Jackson serve on the company's board. corporate financial reports company details Hoover's Hoovers.com The Yucaipa Companies ...www.hoovers.com/yucaipa/--ID__40153--/free-co-factsheet.xhtml
Judicial Watch Cries Foul Over Clinton Hire
... the California investment firm Yucaipa Companies from hiring disgraced ex-president Bill Clinton to help keep the ... hire, noting that Yucaipa is owned by Clinton mega-donor Ron Burkle ...www.freerepublic.com/focus/fr/665407/posts
People with pension funds run by California investment firm Yucaipa Companies, will probably end up supporting these left wing newspapers. Another great investment for liberals like Err America and other liberal has been companies.
If the bids are below $60/share, they say to expect shares in NYT, Gannett, etc. to take a hit.
Here's hoping....
YUCAIPA YIELDS PROFITS
March 8, 2006
Letter to The Editor, NY Post
http://www.nypost.com/postopinion/letters/64823.htm --
Nothing Peter Schweizer said about President Bill Clinton, Yucaipa or its investments is correct ("A Fund for Friends," Post Opinion, Jan. 29).
Since 1986, Yucaipa's returns have averaged over 40 percent annually.....Yucaipa based its decision to invest in Current TV, in part, on Rupert Murdoch's personal support of the network. The Post said that the network is "very good, and it is definitely nonpartisan."
--SNIP--
Pension funds invest with Yucaipa because of its ability to produce superior returns while simultaneously receiving top honors from the AFL-CIO and the Urban League. This should be commended, not criticized.
Frank Quintero
Spokesperson
The Yucaipa Companies
Beverly Hills, Calif.
I am glad to see this. I have been hoping that unons would grow up and join the system. Buying companies is better than forcing them into bankrupcy or sending them to China with unreasonable demands. I can't wait to see what they decide to pay the CEO. They have lots of money and this is better than politics, I think. Now, get the longshoremen to buy the port terminal company.
Hopefully that will happen and the NYT stocks take even more of a hit.
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