Gannett changes pay rule in case of sale |
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Fri, 10 Aug 2007 16:57
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NEW YORK (AP) - Gannett Co. Inc., the nation's largest newspaper publisher, changed agreements with its top two executives that would accelerate payment of retirement and deferred compensation if the company is sold, according to a regulatory filing.The company also changed the threshold at which an employee buyout constitutes a change in control that would trigger the executive payments. A spokeswoman for the company said she could not immediately confirm whether the change involved lifting the threshold.Gannet said it made the change to comply with tax codes and the move did not indicate it was entertaining any offers.'These were routine amendments and were not made in anticipation of a sale,' said Gannett spokeswoman Tara Connell. 'Nothing is in the works. We were mandated to make these changes by the IRS.'The newspaper industry has been in turmoil for the past year, as several prominent -- and previously thought to be untouchable -- properties have changed hands. The sector has struggled with a persistent decline in revenue as advertisers shift spending online.Most recently media tycoon Rupert Murdoch's News Corp. prevailed in a monthslong courtship of Dow Jones & Co., the family controlled publisher of The Wall Street Journal. Knight Ridder Inc. was sold last year and Tribune Co., publisher of the Los Angeles Times, got bought a few months ago.Gannett, based in McLean, Va., consistently delivers double-digit profit margins and is considered well run. With a market capitalization of about $11 billion, the company would constitute a large purchase, especially in a market where debt financing is difficult to come by.Gannett shares fell $1.01, or 2.1 percent, to $46.33 in midday trading. In the past year, the stock has ranged from $45.96 to $63.50.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Gannett 2Q earns rise on asset sales 