By: E&P Staff Knight Ridder Inc. confirmed Monday its board has hired Goldman Sachs & Co. to explore strategic alternatives to enhance shareholder value, including a possible sale of the company.
The giant media company and newspaper chain said it will disclose developments concerning the sale and other alternatives unless its board has approved a specific transaction.
Along with exploring alternatives for the company, the Knight Ridder board amended by-laws so that shareholders can submit proposals for consideration at Knight Ridder's 2006 annual meeting, scheduled for April 16.
In addition, shareholders can now make nominations for directors to be elected to the board. The annual meeting may be postponed, the company said.
Shares of Knight Ridder ended Friday at $62.87, off 45 cents. The stock's up nearly 20% since the end of October.
Knight Ridder cautioned there can be no assurance that the process will result in any transaction.
Earlier this month, the company's largest shareholder, Private Capital Management LP of Naples, Fla., announced it may nominate a slate of directors to the company's board as it urged Knight Ridder to pursue a sale of the company. Private Capital owns 19 percent of Knight Ridder.
Another major shareholder, Harris Associates LP, a Chicago-based money manager, later sent a letter to Knight Ridder's board urging the company to consider offers "immediately" given the wide gap between the company's current share price and its intrinsic value. Harris has an 8.2 percent stake in Knight Ridder.
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