By: Lucia Moses Company Publishes Arizona Republic, Indianapolis Star
Central Newspapers Inc., publisher of The Indianapolis Star and The Arizona Republic,
announced Thursday it is in preliminary talks that could lead to a possible sale or
merger. The company has retained New York investment bank Donaldson, Lufkin & Jenrette
to assist in the talks.
The company said the Eugene C. Pulliam Trust, which owns shares representing about 78%
of the company, supports the decision and has retained New York investment bank Goldman,
Sachs & Co. as its own adviser.
The company said it would make no further comment until an agreement is reached or talks
are ended.
Central's share price jumped more than 48% to 46 5/8 within a few hours of the announcement.
Like other newspaper companies, its stock price has been languishing in recent months.
Possible suitors could include Gannett Co. Inc., Tribune Co., and Knight Ridder, as well as
Cox Enterprises and The McClatchy Co., the Indianapolis Star reported Thursday.
The news comes as a wave of merger and sale activity has swept the media world. Earlier this
year, the Tribune-Times Mirror and America Online-Time Warner combos were announced, while
four newspaper companies have put substantial holdings up for sale as they shift strategically
and seek to raise their stock prices.
Central Newspapers reported profits of $98.3 million on revenue of $804.1 million in 1999. In
addition to the Star and Republic, its two biggest papers, the company publishes several
smaller papers in the South and Midwest and owns an Internet division and interests in a
newsprint company and BrassRing, a recruiting service provider.
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