Friday, May 12, 2006

Knight Ridder sale isn't a done deal

Knight Ridder has disclosed in a Securities and Exchange Commission filing that June 26 is the date when its shareholders will vote on whether to sell the company to McClatchy Co. The deal needs to be approved by 80 percent of shareholders. Approval is likely since 90 percent of the company's stock is held by institutions. Jennifer Saba of E&P notes that the proxy statement lists pros and cons of the deal, including the risk that McClatchy won't be able to get enough money for the papers it still must sell, and that regulators might derail the deal because of antitrust concerns. [E&P Sidebar: 34 firms looked at buying pieces of KR; proxy filing gives details on sale process]

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