News that McClatchy Co., owner of the Sacramento Bee, was the high bidder in the auction for Knight Ridder appeared to have rallied investors, who bid up each companies stock yesterday. McClatchy, whose stock hit a 52-week low on Thursday, jumped 2.5% on the news to close at 53.24 yesterday. Knight Ridder stock closed at 65 even, up 3.73% on the day. McClatchy said it is offering “more than” $65 per share in a $4.35 billion stock and cash deal for the 32-daily chain. Pete Carey of the Mercury News reports that KR’s board of directors will meet in New York on Sunday to consider the bids. He also noted that while Gannett and MediaNews, which were discussing a joint offer, haven’t submitted a bid, a source said the situation is “still fluid,” suggesting a late bid might be forthcoming. Editor & Publisher’s Jennifer Saba says that a McClatchy deal is “far from clinched,” and she quotes one analyst as saying that the board still might reject the bid.
Markets like McClatchy's Knight Ridder bid
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