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Three firms consider bid for Knight Ridder
Associated Press
Published December 2, 2005
NEW YORK - Three private-equity firms are considering a bid for Knight Ridder Inc., the newspaper publisher whose three largest shareholders are pressing for a sale, the Wall Street Journal reported Thursday.
The Blackstone Group LP, Providence Equity Partners Inc. and Kohlberg Kravis Roberts & Co. are in the early stages of preparing a bid for the San Jose, Calif., company, which publishes 32 newspapers around the country, including the Miami Herald and the Philadelphia Inquirer .
The Journal, quoting unnamed people familiar with the talks, said the three firms were interested but concerned that the company's market value of $4-billion is too high.
Knight Ridder and KKR declined to comment, and the other two investment firms didn't return calls.
Knight Ridder has been under heavy pressure from its largest shareholder, Private Capital Management, to boost its share price. Last month, PCM demanded that Knight Ridder put itself up for sale, and two other large investors followed suit.
Like other newspaper publishers, Knight Ridder has fallen out of favor on Wall Street in the past year as readers and advertisers move to the Internet. Newspaper circulation is in a long-term decline, and costs for newspapers, including newsprint and employee benefits, are rising.
[Last modified December 2, 2005, 01:13:14]
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