Friday, April 11, 2008
Al Diamon
Deadline Time for Blethen Buyers
Officials at the Blethen Maine Newspapers have told groups that have expressed interest in buying its three Maine daily papers and other properties to submit bids by Friday, April 18. According to a source familiar with the dealings, those seeking to purchase the Portland Press Herald, Kennebec Journal and Morning Sentinel will not be required to make a firm offer at that time, but will be asked to specify a price range within which they’re willing to negotiate. Blethen also wants potential purchasers to demonstrate their financial ability to complete the purchase.
“This deadline will narrow the field down,” said the source, “and weed out the players who don’t have the cash.”
So far, only one group has made its interest in the papers public. The Portland Local of the Newspaper Guild, the union that represents much of the Press Herald’s staff, is preparing a bid based on an employee stock ownership plan. The Guild has hired a Boston lawyer to assist it in setting up that complicated structure and is seeking local investors to finance it.
As previously reported, Media News Group of Denver has met with Blethen officials about a possible purchase. At least two other national newspaper chains have also been rumored to be interested, but calls to both were not returned. In Maine, at least one group of local investors has discussed the purchase with state officials, but the identities of those involved remain a secret. According to the source cited above, Gov. John Baldacci described those potential owners as “a good group.”
Among those whose names keep surfacing as possible members of the local consortium is Chris Miles, the new president of the Times Record, which was recently purchased by the Sample News Group. Sample also owns the Biddeford Journal Tribune and several weeklies. Asked about his involvement, Miles said, “I certainly don’t have any comment at this time.”
Also mentioned in the rumor mill: Robert Monks and Phineas Sprague, both wealthy Cape Elizabeth residents. Sprague has confirmed to numerous people that he wants to buy the papers, but is not considered a serious contender, according to a knowledgeable industry insider. Monks, however, may be. He could not be reached for comment.
Chris Harte, former president of the Portland papers and now one of the owners of the Minneapolis Star Tribune, is another subject of the same rumors. Harte, who’s also a major investor in the Current newspapers (some of which I write for), said he’s unlikely to be a player. “I am almost undoubtedly not going to be submitting a bid,” he said in a phone interview. “I’m too busy in Minneapolis. I just don’t have time to make a good decision.”
Several members of the local media also mentioned the owners of the Lewiston Sun Journal as possible bidders for the Blethen’s papers in Augusta and Waterville. The Sun Journal competes with both the Morning Sentinel and Kennebec Journal in parts of its circulation area. Sun Journal publisher James Costello Sr. did not respond to a phone call seeking comment.
Al Diamon can be e-mailed at aldiamon@herniahill.net.
Posted on Friday, April 11, 2008 in Permalink
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