Posted on 07/28/2006 9:03:37 PM PDT by SmithL
A federal judge issued an order Friday that allows the sale of four newspapers, including the Times, to MediaNews Group Inc., pending a separate decision by the U.S. Department of Justice.
The ruling by U.S. District Judge Susan Illston clears a major obstacle that could have stalled the sale of the Times, San Jose Mercury News, Monterey County Herald and St. Paul (Minn.) Pioneer Press. San Francisco businessman Clinton Reilly had filed a lawsuit aimed at halting the deal in which Sacramento-based McClatchy Co. would sell the papers to Denver-based MediaNews.
The judge denied a request by Reilly for a temporary restraining order that would have stalled the sale of the papers for 10 days.
But Judge Illston warned in her 16-page order, issued Friday evening, that it was possible the sale could be reversed at some point, depending on evidence she receives in the coming months.
"While there is a need to examine the consequences of the proposed sale further to ensure that no long-term harm will come to Bay Area residents," Illston wrote in her order, "the transaction creates no pressing and imminent danger to plaintiff or the public that would justify blocking the newspaper sales."
Separately, the federal Department of Justice said it was continuing to review the proposed sale of the papers on antitrust grounds.
One person familiar with the situation expects that a decision could come Monday from the Justice Department and the sale could be completed within a day after that.
FYI
In a typical edition of The Contra Costa Times, the only parts worth looking at are the crossword puzzle and the weather report.
Ok...time to fire a lot of hippies in the newspaper business.
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