Knight Ridder, the publisher of 32 daily newspapers including The Miami Herald and The Philadelphia Inquirer, has come under fire from its largest shareholder, which yesterday demanded that the company put itself up for sale. The letter cited "limited revenue growth across the newspaper industry" and the limpness of the company's stock price despite several moves the company has made since then, including raising its dividend, repurchasing shares and selling assets. If Knight Ridder's board does not accede to the demand, the firm added in a securities filing, it would "strongly consider" supporting efforts by other unnamed investors to replace the board and managers, take over the company or "take other action to maximize shareholder value. Knight Ridder executives did not return calls to their San Jose, Calif. Knight Ridder shares have not performed much worse than some other newspaper stocks since it held the meeting with investors on July
Group Subscription. Get a fresh start. He knew all the revenue numbers and regional revenue numbers. Pruitt of McClatchy that he was "disappointed in the stock performance of the entire sector," Mr. Their respective heirs acquired papers and merged in
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Sherman, the year-old, press-shy co-founder of Private Capital, has catapulted himself onto the riddwr pages of virtually every newspaper in the country. Sherman can only wait and see whether bidders managgement. While the Internet has robbed newspapers of Knight ridder private capital management and advertising revenue, value investors also say newspaper companies will eventually be able to make lots of money from the Internet. Pruitt of McClatchy that he was "disappointed in the stock performance of the entire sector," Mr. Sherman earned a degree in accounting from the University of Rhode Island and received his M. Optional: help us by adding the time.
Its chief executive, Bruce S.
- The largest shareholder of Knight Ridder Inc.
- WHEN P.
- Thursday afternoon update: The top Knight Ridder news of the day is that its next two largest institutional shareholders have joined Private Capital Management in pushing for exploration of a sale.
- The chairman and chief executive of Knight Ridder, P.
In the exclusive resort town of Naples, Fla. But with a single letter pushing for the sale of Knight Ridder, Bruce S. Sherman, the year-old, press-shy co-founder of Private Capital, has catapulted himself onto the business pages of virtually every newspaper in the country.
At a time when Wall Street views newspapers as an ailing industry, Mr. Sherman's clients own large chunks of nine newspaper companies, including 19 percent of Knight Ridder, 15 percent of The New York Times Company and 7 percent of Gannett, among others.
At the end of this week, when expressions of interest in Knight Ridder come due, Mr. Sherman will get a better sense of whether his huge investment was prescient or wrongheaded.
Multiple offers for Knight Ridder -- with 32 dailies, it is the second-largest United States newspaper chain after Gannett -- would underscore the value of newspapers.
But a dearth of interest would raise investor concern at a time when his performance is lackluster. Sherman's track record has been stellar. Private Capital had major stakes in four companies, including International Dairy Queen, were sold to Berkshire Hathaway, the investment company controlled by Warren Buffett.
But Private Capital's performance was down 0. Shares in six of those companies have fallen at least 14 percent this year.
His investors can take a bit of comfort. Since Nov. Since Mr. Sherman began bulking up on newspaper stocks inskeptics have wondered what Mr. Sherman saw in newspaper companies that others Bolton can lover michael we not. Is he investing in "the buggy whip business," as one veteran media investor put it, declining to comment on the record about a rival's strategy.
Or, privatte others argue, is he buying stocks on the cheap, poised to reap big rewards when they rebound? To value investors like Mr. Sherman, there is a rationale for putting money into a monopoly business: local daily newspapers are often the only ones in their markets, as well as the largest conduits for advertising. And clearly Mr. Sherman believes that these stocks can continue to generate cash, which can be privaate to buy back shares and raise returns privste investors.
Sherman declined to comment for this article. Value investors also argue that newspapers have room to cut costs. While the Internet has robbed newspapers of circulation and advertising revenue, value investors also say newspaper companies will eventually be able to make lots of money from the Internet. Priavte instance, CareerBuilder. Arthur has written. Berghoef, director of research at Harris Capital, which owns 8 percent of Knight Ridder, and is also urging Knight Ridder to sell.
This is not the first time Mr. Sherman has bet heavily on a single stock or sector. He currently has But some investors worry that Private Capital's sheer size could turn into a handicap. Tanous, an investment adviser whose clients have money at Private Capital. If he is wrong, he loses because he is stuck with it. It would take him years to get out of these positions. Still, Mr. Tanous's opinion aside, not much is known about the man who is challenging Wall Street's view of the June whitfields breasts industry.
He is rarely quoted in newspaper business pages. Nor does he appear on TV's business talk shows. His firm has no public relations department, nor does Mr. Sherman solicit for new clients. A number of money managers who generally know the industry's orivate players say they know little about Mr. One executive at Private Capital seemed genuinely surprised at the amount of attention the firm had attracted. One of the few insights into Mr. Sherman's investment approach comes from a lengthy interview in a book by Mr.
Tanous, "Investment Gurus. Sherman prefers to visit companies personally, he told Mr. Tanous, because "you're seeing the C. But Mr. Sherman has not always applied that strategy. Sherman did not meet with top executives there before buying stock. It is not clear whether Mr. Sherman's approach has shifted as his funds grew, or if he feels he knows the newspaper industry well enough already. Last April, Gary B. Pruitt, the chief executive of the McClatchy company -- which owns 29 newspapers including dailies in Minneapolis; Sacramento; Knigth Raleigh, N.
Sherman, whose firm owns Pruitt said. He knew all the revenue numbers and regional revenue numbers. It was not a passing or cavalier knowledge," said Mr. Pruitt, who said he regularly talked with Mr. Knight ridder private capital management began learning Knight ridder private capital management investing at a tender age. Growing up in Queens, he became fascinated with stocks.
He was given shares of the Polaroid Corporation as a bar mitzvah gift that his father insisted he hold until he was By then, their value had increased ninefold. The neophyte investor concluded they were overvalued, and sold them. Sherman earned a degree in accounting from the University of Rhode Island and received his M. After college, he Knight ridder private capital management not irdder for the stock market; he joined Arthur Andersen, the accounting firm.
At age 29, a search firm recruited Mr. Sherman to be chief financial officer of a company owned by the Collier family, which held interests in a variety Knighg businesses, having made a fortune in Orlando female strippers and real estate.
He moved to Naples, Fla. Sherman began managing stock investments for the Colliers in the 's and, as word of his skill spread among other wealthy families, they began giving him money to manage. He got his first taste of the newspaper business as a director of The Naples Daily News, which the Colliers owned. His involvement was important in the sale of the Naples paper to the E. Today, Mr. Sherman and his second wife, Cynthia, a former lawyer, live just down the street from Private Capital's offices in a high-rise in a gated community on Pelican Bay.
Though Mr. Sherman is not an avid golfer, two people who know him said he was a member of the exclusive Collier's Reserve Country Club in Naples. Over the last several years, the Shermans have played an increasingly visible role in the social life of Naples. Charlie Palmer, American massive boobs chef of Aureole in Manhattan, will prepare the dinner that the Shermans are capotal.
The couple are also involved with efforts to build a Jewish community center and Mrs. Sherman is a founder of the Holocaust museum in Naples. Sherman's big coup came inwhen he and his business ridver, Gregg J. Some Private Capital investors have worried that Mr. The final payment depends on Knight ridder private capital management much money Private Capital has under management at the end of However, there appears to be little risk of Sexy female policewomen fucking. Sherman's failing to collect the balance.
If it meets that goal, the payments will be made over a three-year period starting in Instead, the push to sell Knight Ridder came because the chain's bylaws require that dissident shareholders submit nominations for board seats by the end of November. And Mr. Sherman was clearly worried. Last April, he told Mr. Pruitt of McClatchy that he was "disappointed in the stock performance of the entire sector," Mr.
Pruitt recalled. Now Mr. Sherman can only wait and see whether bidders emerge. Some private riddsr firms and McClatchy may be managementt in bidding for Knight Ridder, a person close to Knight Ridder said. Also, Craig A.
Nov 14, · In doing so, Knight Ridder was responding to pressure from Private Capital Management, the company’s largest shareholder, which sees an auction or sale as a way to perk up Knight Ridder’s Author: Daniel Gross. Mar 15, · Mr. Ridder said he thought that he had no choice but to sell. Mr. Sherman, a founder of Private Capital Management who owned the biggest portion of Knight Ridder stock, was in a Author: KATHARINE Q. SEELYE. Aug 27, · Mr. Sherman’s Private Capital Management began investing in Knight Ridder in April , and by it had become the company’s largest shareholder, with a 19 percent stake. losangelesmarriottdowntown.com: KATHARINE Q. SEELYE.
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At age 29, a search firm recruited Mr. Sherman, there is a rationale for putting money into a monopoly business: local daily newspapers are often the only ones in their markets, as well as the largest conduits for advertising. Some Private Capital investors have worried that Mr. Log In. Sherman's track record has been stellar. Or, if you are already a subscriber Sign in. Sherman prefers to visit companies personally, he told Mr. Promoted Content. Two newspaper companies with the financial resources to make a deal, McClatchey and Gannett, tend to focus on smaller markets with growth potential. Pioneer Press and Lexington Ky. At the end of this week, when expressions of interest in Knight Ridder come due, Mr. Sherman has bet heavily on a single stock or sector.
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MIAMI — Bruce Sherman turned his first stock-market deal on his 21st birthday, when he gained control of the 10 Polaroid shares his dad had given him as a bar mitzvah present eight years earlier. Sherman is still doing much the same thing as chief executive and chief investment officer of Private Capital Management PCM , a money-management firm based in Naples, Fla. The numbers have grown a bit, though. That compares with 9.