By: E&P Staff Noting that this morning's news ?is bound to raise questions for many of you,? Knight Ridder Inc. CEO Tony Ridder sent a lengthy memo to employees today, including a kind of FAQ.
The company announced this morning that it had hired Goldman Sachs to handle a possible sale of the company or parts of it , or to take other actions in response to new demands from shareholders to improve its stock position.
Before getting to the Q & A facts, Ridder wrote that he had ?just a few additional thoughts. One of the many things that are great about Knight Ridder is the quality of its people. I have never doubted that we have some of the best in the publishing industry. Our jobs, always, have been to publish great newspapers and online services, and we have done that very well. It is important that we continue to do so in the weeks and months to come. Indeed, a big part of all of our jobs will be to stay focused. Nothing could be more critical to the best outcome of the process we're now in than that we run our businesses well.
?Finally, I would like to reiterate something I have said before, but it feels like a good time to say it again: I am very proud of all of you and of Knight Ridder.?
The memo, first published at the Romenesko site at www.poynter.org, stressed that a sale was only one option and in fact there is a wide range of possible outcomes including ?restructuring the company or engaging in some other form of transaction or maintaining the company in its current form.? It also said there was no ?timetable.?
Here are some of the Qs and As in the memo.
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Q: Is my job protected?
A: Unfortunately, now, as always, there are no guarantees. However, during this period of uncertainty, we must continue to produce the highest quality products for our readers and advertisers. And we will continue to work to provide a return on investment for our shareholders. Our employees are critical to this goal and we value and appreciate the contribution you make.
Q: I keep hearing about a possible "change of control." What does that mean?
A: A ?change of control? generally refers to the sale of a company.
Q: Will there be changes in the way our local company operates?
A: During this period of exploring strategic alternatives, we will continue business as usual. But we also will continue to be mindful of expenses in what continues to be a difficult revenue environment.
Q: Does today's announcement affect my compensation?
A: No. The announcement will not affect your compensation.
Q: What happens to my current Knight Ridder health and welfare benefits during this period?
A: Your current coverage options will continue under their existing terms. The health of our employees remains a critical focus of our strategy. The plan design changes and the employee rates announced during open enrollment will take effect as planned.
Q: Can I continue to participate in Knight Ridder's employee stock purchase plan?
A: Yes.
Q: Does this process affect the shares I hold through the employee stock purchase plan?
A: No.
Q: What will happen to my stock options if we are acquired?
A: If we are acquired and the acquiring company does not assume the options, the options will immediately vest and you will be paid for those that are in the money, and those that are not in the money will be canceled.
Q: Will I lose my vested pension benefit if there is a change of
control in the future?
A: No?.
Q: Will my 401k Plan benefit be affected?
A: No?.
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