Feds ask More Time to Look at Sale of Four KR Papers

FEDS ASK MORE TIME TO LOOK AT SALE OF FOUR KR PAPERS
[SOURCE: San Jose Mercury News, AUTHOR: Pete Carey and Chris O'Brien]
Federal regulators reviewing the purchase of Knight Ridder by McClatchy need more time to examine McClatchy's proposed sale of four Knight Ridder newspapers, including the Mercury News and two other Northern California papers, to Denver-based MediaNews Group. The request from the Department of Justice came Monday, the final day of an initial 30-day period regulators have to review major mergers and acquisitions under guidelines set down by the Hart-Scott-Rodino Antitrust Act. McClatchy received a request for more information on its purchase of Knight Ridder on April 26. That review is ongoing, said people familiar with the process. The latest request from regulators focuses on McClatchy's sale of four Knight Ridder papers, including three in the Bay Area. MediaNews is also buying the St. Paul Pioneer Press. While experts believe the sales won't be blocked, an obvious area of antitrust concern is the purchase of the Mercury News, Contra Costa Times and Monterey County Herald by MediaNews Group. MediaNews already owns seven papers in the region, which overlap in some areas with those it is acquiring. The timing may jeopardize McClatchy's plan to close the deal to buy Knight Ridder and simultaneously sell the four papers. The sale of Knight Ridder to McClatchy is slated for 4 p.m. June 27. It's possible the Justice Department could approve that sale before then but take more time on the MediaNews deal, forcing McClatchy to take over the papers for a short time, something it was anxious to avoid.
http://www.mercurynews.com/mld/mercurynews/business/14814416.htm