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PHILADELPHIA - Gannett Co. Inc., the nation's largest newspaper chain, said Thursday that it is weighing a bid for some of the 12 newspapers McClatchy Co. wants to sell after its planned acquisition of Knight Ridder Inc. this summer.
Gannett chief executive Craig Dubow said he's taking "a hard look" at the papers, but would not name any he particularly wants, during questioning by investors following a presentation to the Media and Entertainment Analysts Society of New York, according to a Gannett spokeswoman.
In addition to The Philadelphia Inquirer and Philadelphia Daily News, the papers for sale are: The Contra Costa Times, (Monterey County) Herald, and San Jose Mercury News in California; (Fort Wayne) News Sentinel in Indiana; Duluth News Tribune and St. Paul Pioneer Press in Minnesota; Grand Forks Herald in North Dakota; Akron Beacon Journal in Ohio; (Wilkes-Barre) Times Leader in Pennsylvania; and (Aberdeen) American News in South Dakota.
People who work for Gannett have said the company might be interested in some midsize Knight Ridder papers, such as Akron and Fort Wayne. Gannett owns five papers in Indiana and 12 in Ohio.
McClatchy has told bidders to make their offers by Tuesday.
McClatchy plans to keep Knight Ridder papers in Miami, Charlotte, Ft. Worth, Kansas City and 16 smaller markets.
After Knight Ridder offered itself for sale in November, Dubrow said Gannett would take a "hard look" at the company, the same words he used at Thursday's investors conference. Asked why Gannett hadn't made an offer on the whole chain, chairman Doug McCorkindale said the company was concerned about possible regulatory complications for Gannett's television stations, several of which are in markets served by Gannett or Knight Ridder newspapers.
The Federal Communications Commission licenses television stations, and FCC rules - much criticized by media owners - limit "cross ownership" of television stations and newspapers in local markets.
Gannett is the nation's largest newspaper publisher. It owns USA Today and 90 local dailies, along with related Web sites and specialized publications.
Gannett joins another chain, MediaNews Group of Denver, in confirming interest in at least some of the papers McClatchy doesn't want. MediaNews officials have expressed interest in acquiring Knight Ridder's California dailies and merging production and distribution with papers it already operates in the Oakland area, but has not said whether it will bid for Philadelphia and other Knight Ridder papers.
Gannett is a partner with MediaNews Group in newspaper investments or operating agreements in south-central Pennsylvania and parts of California, Michigan, New Mexico, and Texas. Gannett spokeswoman Tara McConnell said the company would not comment on whether it plans to join MediaNews in joint bids for some of the Knight Ridder papers.
Other bidders for the newspapers include Yucaipa Cos. of Los Angeles, a private equity firm, which says it is bidding for all 12 papers and is favored by the Newspaper Guild labor union; and local media companies and investment groups in several of the Knight Ridder markets.
Also at Thursday's investors' conference, Dubow said Gannett likely will report first-quarter earnings at the low end of Wall Street estimates.
Gannett shares closed up 35 cents at $59.40 on the New York Stock Exchange.
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(c) 2006, The Philadelphia Inquirer. Distributed by Knight Ridder/Tribune News Service.
