Morgan Stanley's Trying to Take Over the NYTimes

[NashVegas]

Major shareholder challenges Times corporate structure

Morgan Stanley Investment Management, one of the largest shareholders (they own 7.6% of the shares) of The New York Times Company, has stepped up a campaign to spur the company to change its dual-class share structure by sending a report to the board that is sharply critical of its governance practices.
...

Times Co., however, said its directors are attuned to the interests of all investors and its corporate practices meet or exceed the highest standards. In a letter to the Morgan Stanley fund manager, Hassan Elmasry, Times Co. governance officer Rhonda L. Brauer added that only the trustees of the Sulzberger trust can revamp the structure, and "they have given no indication of any willingness or desire to do so."

The exchange of letters, first reported in yesterday's New York Times, is the latest development in Elmasry's campaign to eliminate the special class of shares that maintain the Sulzberger family's control. It comes at a time when the newspaper industry struggles with shrinking revenues and profits as readership moves online, and faces new competitors, such as Google Inc.
...
“Mr. Elmasry has made it clear that his focus on governance was a smokescreen for his true issue, which is the dual-class structure,” Ms. Mathis said. “This structure has been in place before we went public, and the family trustees have given no indication of any desire to change it.”
....
The dual structure of The New York Times Company has been in place since before the company went public in 1969 and was intended to protect the newsroom from interfering outside pressures. The structure can be overturned only if six of the eight members of the family trust, including Mr. Sulzberger, decide to repeal it.



http://www.nytimes.com/2006/11/04/business/04times.html?ref=media

http://www.boston.com/news/nation/articles/2006/11/05/major_shareholder_challenges_times_corporate_structure/

[underpants]

1. I saw Jack Welch on Fox last week hinting at buying the Boston Globe

Cavuto half joked that Jack's newest wife would run it.

[NashVegas]

2. kicking

because i can