By: Jennifer Saba Harbinger Capital and Firebrand Partners are chasing windmills by trying to change control of The New York Times Co. by pushing a slate of Class A directors for nomination, a note from Goldman Sachs asserted.
Analyst Peter Appert wrote in a update to investors that while shareholder frustration is understandable he is "skeptical" that Harbinger and Firebrand's actions will lead to -- what the Street is found of saying -- unlocking value.
"We do not see an easy or quick fix to what ails the company (and industry), other than continued investment to drive a migration of revenues and earnings to Internet-based operations," Appert wrote.
"It is not clear to us what Harbinger and Firebrand bring to the table to address this challenge."
Late on Friday, the New York Times disclosed that Harbinger Capital intended to nominate four class A directors during the company's annual meeting on
April 22.
The founder of Firebrand revealed in
a letter to New York Times executives who would be on that slate and asked that words like "hostile" and "friendly" be jettisoned from the discussion.
Also on Friday, Harbinger Capital made a
similar move with Media General.
Goldman Sachs maintained its "sell" rating on the New York Times.
Shares of the New York Times are trading up $1.05 to $15.71 as of mid afternoon.
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