New York Times Surges After Investor Group Said it May Buy Boston Globe
Stock Chart for New York Times Co/The (NYT)
New York Times Co. surged as much as 10 percent in late trading after an investor group said it may make an offer to acquire the company’s Boston Globe.
Times Co. rose 38 cents to $8.01 at 6:11 p.m. in extended trading after earlier touching $8.42. The shares fell 16 cents to $7.63 at 4 p.m. in New York Stock Exchange composite trading.
A group called the 2100 Trust said in an e-mailed statement that it is organizing community investors to submit a letter of intent to purchase the newspaper and related assets. “This will require the significant long-term investment that we intend to make,” the group said.
John Boit, a spokesman for 2100 Trust, said the group was founded by Aaron Kushner, a Wellesley, Massachusetts-based owner of Marian Heath Greeting Cards. Boit, in an interview, declined to name any other investors, the price or timing of any bid.
“We do not comment on rumors of acquisitions or divestures,” Robert Christie, a spokesman for New York-based Times Co., said in a statement. “The Boston Globe is an important part of The New York Times Company. The Globe has made excellent progress and is on solid financial footing.”
Times Co. last year halted a potential sale of the Globe after its unions agreed to $20 million in cost cuts. The Globe was on track to lose $85 million last year on an operating basis, Times Co. said previously.
Yesterday, New York Times reported third-quarter sales that fell short of analysts’ estimates as advertising and circulation revenue declined. Earnings topped estimates after pension expenses declined.
Sales slid 2.7 percent to $554.3 million, the New York- based company said. Analysts had projected $558.8 million on average, according to a Bloomberg survey. The net loss shrank to $4.26 million, or 3 cents a share, from $35.6 million, or 25 cents, a year earlier. Excluding some items, profit of 7 cents a share exceeded the 5 cents projected by analysts.
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