Wednesday, November 30, 2005
Knight Ridder - Analyst Says Prerequisite for Buy is More Cost Cutting
Newsday runs a DowJones/AP report on the latest surrounding the possible sale of Knight Ridder as a whole or in parts. The story cites what Doug Arthur, newspaper analyst for Morgan Stanley wrote in a recent report:
The "absolute prerequisite" for any potential buyer, whether a rival newspaper company or a buyout firm, "is a view that a significant amount of both cost-cutting and value can be harvested and that some of Knight Ridder's depressed markets can grow again."Interesting lead for the story:
Bankers liken a potential acquisition of newspaper publisher Knight Ridder to buying beachfront property: It's a valuable, hard-to-come-by asset, but it's eroding.