Executives: Globe, Sox not for us
Purcell, Connors dismiss reports they may make bids
- |
Two Boston businessmen yesterday said they were not involved in any talks to buy two of the best-known properties in Massachusetts: The Boston Globe and a piece of the Red Sox.
Former advertising executive Jack Connors denied a Saturday report in the Financial Times that he was in talks with The New York Times Co. to buy The Boston Globe, as well as Times Co.'s 17.5 percent stake in the Red Sox.
"There's nothing to it," Connors told the Globe. "I'm not buying The Boston Globe. I'm not buying anything that The New York Times owns."
Two years ago, Connors teamed up with former General Electric Co. chief executive Jack Welch to put together a bid to buy the Globe, though Welch later said Times Co. was not interested in selling the newspaper at the time. Last week, Welch declined to comment.
The Financial Times also described a possible scenario in which prospective bidders would merge News Corp.'s Ottaway newspaper chain with the Globe and the Boston Herald. As part of the deal, the Herald would be closed.
But in a statement yesterday, Boston Herald owner Patrick Purcell, who recently became executive chairman of Ottaway, called the Financial Times story "completely unfounded and not rooted in reality."
Purcell said he has not had any discussions with any potential bidders for the Globe in his Ottaway role. He also said he was committed to keeping Boston a two-newspaper city, suggesting that he wouldn't go along with any plans to shutter the Herald.
News Corp., the New York-based media company headed by Rupert Murdoch, declined to comment.
Purcell was publisher under Murdoch when the media baron owned the Boston Herald. He bought the paper from Murdoch's company in 1994.
The New York Times Co. did not return a call seeking comment yesterday.
The Financial Times also suggested that Boston Scientific cofounder Peter Nicholas was interested in purchasing Times Co.'s stake in the Sox. Nicholas could not be reached for comment.
Times Co. has not said whether it plans to sell the Globe. But last week, the Globe and several other newspapers reported that Times Co. is actively seeking buyers for its stake in New England Sports Ventures LLC, the holding company that owns the Red Sox, Fenway Park, and 80 percent of New England Sports Network.
Like most other newspaper companies, Times Co. has faced a steep decline in print advertising due to competition from Internet sites and because of the global recession, spurring it to look for ways to cut expenses.
The New York-based media company has a $400 million credit line that's due to expire in May, meaning it could potentially have to pay back the loan if it can't renegotiate or extend it.
Times Co. recently said it plans to borrow $225 million against its headquarters building in Manhattan. And its chief executive, Janet Robinson, indicated earlier this month that the company would likely sell some assets as part of the effort to rebalance its portfolio.
Analysts said it's a poor time to sell assets, however, given the global recession, stock market decline, and credit crunch.
Given the recession, "Who are the potential buyers?" a JPMorgan Chase & Co. analyst, Alexia S. Quadrani, asked this month in a research note.
While selling assets could help the company raise cash, Quadrani noted it might not be able to fetch a high price right now.
"While asset sales may help further alleviate liquidity concerns (or lack of cash), we remain doubtful that" Times Co. could get the prices it desires, Quadrani said.
Marc Ganis, a Chicago sports consultant, estimated Times Co.'s stake in the Red Sox would be likely to fetch at least $100 million. A bond analyst at Barclays Capital estimated $140 million to $166 million. The company paid $75 million for the stake in 2002, before the Sox won two World Series and expanded Fenway Park.
Times Co. shares closed up 2 cents yesterday, at $7.02.
Thomas Farragher of the Globe staff contributed to this story. Todd Wallack can be reached at twallack@globe.com.
