Nov. 29 (Bloomberg) -- Billionaire Maurice ``Hank'' Greenberg said he has no current plans to attempt a takeover of New York Times Co., damping speculation that prompted the biggest rally in the shares in almost six years.

Greenberg, the former chief executive officer of American International Group Inc., said he owns fewer than 100,000 shares in the publisher. His statement sent the shares down 3.9 percent to $23.80 in extended trading on the New York Stock Exchange. They earlier had risen 7.5 percent, the most since January 2001.

``He has no present intention of significantly increasing his holdings,'' spokesman Mark Corallo said in an interview.

The comments downplayed a report on CNBC today that Greenberg, 81, was ``actively'' trying to buy the third-largest U.S. newspaper publisher and had asked investment bankers, including Morgan Stanley CEO John Mack, for help. Morgan Stanley Investment Management is among investors that pressed Chairman Arthur Sulzberger Jr. to drop the dual-class share structure that gives his family control.

The New York-based company had more than 143 million Class A shares outstanding as of Oct. 27.

Family Ownership

Morgan Stanley Investment Management, owner of 7.6 percent of the New York Times, said on Nov. 8 that the publisher's ownership structure ``deviates from what is widely considered to be best practice'' and should be changed.

Morgan Stanley is seeking to have shareholders vote on its proposal to split the role of chairman and publisher and scrap the class of shares that gives the Sulzberger and Ochs families the majority vote. The families own a 1 percent stake of total equity through the Class B shares, which also give them a majority vote.

Among Sulzberger family members, ``no one wants an open break with `Pinch,' but if there's enough shareholder dissent, they wouldn't be seen as leading it,'' said Porter Bibb, managing partner at MediaTech Capital Partners in New York.

Bibb served as a corporate development director at the New York Times in the mid-1970s. Sulzberger, who succeeded his father, Arthur ``Punch'' Sulzberger, as chairman in 1997, is known as ``Pinch.''

Ratings Downgrades

The stock was cut yesterday cut to ``sell'' from ``hold'' by Citigroup Inc. analyst William Bird, who also reduced his earnings forecast for the company for 2006 and the following two years.

Bird said in a note to investors that the New York Times is among the most vulnerable as readers move to the Internet.

The company said in a Nov. 3 regulatory filing that it may write down the value of the Boston Globe, which is struggling with circulation and advertising declines.

Former General Electric Co. Chairman Jack Welch has expressed interest in buying the newspaper, the largest in New England, which the Times purchased 13 years ago for $1.1 billion.

The company isn't the only newspaper group under pressure from investors frustrated by declining shares.

Earlier this year, shareholders prompted Tribune Co., the second-largest U.S. newspaper publisher, to put itself up for sale and led Knight Ridder Inc. to sell itself to McClatchy Co.

Greenberg was considering a bid for Tribune, a person familiar with his plans said on Nov. 13.

Sulzberger ``has done as good a job as can be done given the advertising environment,'' said Edward Atorino, an analyst with Benchmark Capital Co. in New York who has a ``hold'' rating on New York Times shares.

He cited management moves to close a plant in New Jersey, trimming the size of the newspaper and selling real estate.

``They are putting in place a plan to get through these tough times and come out the other end, hopefully with a healthy business again,'' Atorino said.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

Last Updated: November 29, 2006 17:37 EST