GateHouse Media's Second-Biggest Stakeholder Dumps All His Stock

By: Mark Fitzgerald San Francisco investor Jeffrey G. Edwards, who had been the second-biggest single stakeholder in GateHouse Media Inc., disclosed Tuesday that he has sold off virtually all his holdings in the community newspaper publisher.

Through JGE Capital Management LLC and East Peak Partners LLC, Edwards had controlled 6,466,600 shares of stock, or 11.1% of outstanding shares, according to GateHouse's 2008 annual proxy. That stake was surpassed only by GateHouse's principal owner, Fortress Investment Holdings LLC, which owned 41.9%, according to the proxy.

Last week, Edwards disclosed he had sold about one-third of his stake, leaving him with an even 4 million shares, plus about 105,000 shares in accounts for himself and his immediate family.

Tuesday's filing shows that JGE Capital Management and East Peak now own no GateHouse shares at all. Edwards still owns the shares in the individual and family accounts.

The filing does not explain his reasons for dumping the stock, but it has performed poorly in recent months -- falling more than 98% in the past 52-week period.

Nearing the end of trading Tuesday, GateHouse (NYSE: GHS) shares were at 19 cents, down 3 cents, or 13.6%. The stock has traded below $1 since July, and its market capitalization has shrunk to $11.1 million. It has been barred from floor trading, and warned that it could be delisted from the Big Board. Earlier this month, GateHouse submitted a plan for complying with listing requirements to NYSE Regulation Inc.