Work in progress.The Knight Ridder board has accepted a $4.5 billion cash/stock offer from the McClatchy Company, according to a report from the NYT based on “sources involved in the negotiations.” Official word is expected Monday.
Update: The Journal is a bit more careful with its wording, saying only that “McClatchy Co. is poised to win the bidding for Knight Ridder Inc.” with a 4.5 billion bid, roughly $67.50 a share. Combined, KR and McClatchy still would rank second behind Gannett with a combine circulation of about 4.7 million.
– KR chairman and CEO Tony Ridder beneficially owns shares worth $94 million at current prices and about $97.2 million at the $67.50 rate. He also gets a severance package that would be worth at least $5.1 million.
– The Journal suggests the premium of 25 percent over KR’s share price when the sales process began last fall should “stave off industry-wide jitters.”
– KR’s stakes in CareerBuilder might go to partners Gannett and/or Tribune instead.
Related: Knight Ridder Update: KR Board Meets Sunday; Decision Possible By Monday
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