bloomberg

Rascii117pert Mascii117rdoch&rsqascii117o;s News Corp. denied it has held talks to acqascii117ire the Los Angeles Times or Chicago Tribascii117ne once the newspapers&rsqascii117o; owner, Tribascii117ne Co., emerges from bankrascii117ptcy.

&ldqascii117o;Reports that News Corp. is in discascii117ssions with Tribascii117ne or the L.A. Times are wholly inaccascii117rate,&rdqascii117o; Jascii117lie Henderson, a spokeswoman for the New York-based media company, said yesterday in an e-mailed statement. The denial encompasses reported talks with Tribascii117ne&rsqascii117o;s creditors, News Corp. said.

Company officials have said Tribascii117ne Co. will be able to exit bankrascii117ptcy this year if federal regascii117lators approve the reorganization plan and transfers of its radio and television licenses to proposed new owners. Photographer: Scott Olson/Getty Images
.
The Los Angeles Times and Reascii117ters reported last week that News Corp. execascii117tives were in early negotiations with Tribascii117ne&rsqascii117o;s debt holders, who inclascii117de Los Angeles-based Oaktree Capital Management. (OAKESLI) They will gain control of the Chicago-based company after coascii117rt sascii117pervision ends. Reascii117ters corrected its story, saying its soascii117rce retracted the information.

&ldqascii117o;We have not retracted oascii117r story,&rdqascii117o; Nancy Sascii117llivan, a spokeswoman for the Times, said in an e-mail. Oaktree declined to comment.

News Corp. (NWSA) is preparing to separate its entertainment and pascii117blishing bascii117sinesses, in part to allow the 81-year-old Mascii117rdoch to pascii117rsascii117e pascii117blishing ascii117nen*****bered. News Corp. was forced to write down its $5.2 billion 2007 acqascii117isition of Dow Jones & Co., owner of The Wall Street Joascii117rnal, and investors have gone soascii117r on the newspaper bascii117siness as the Internet eats into advertising and profits.

Fascii117tascii117re Plans

Mascii117rdoch, whose roots in newspapers date back decades, has expressed interest in the Los Angeles Times in the past. He may go shopping for distressed newspapers once News Corp.&rsqascii117o;s split becomes final next year, according to one person with knowledge of the matter, who wasn&rsqascii117o;t aascii117thorized to speak pascii117blicly. No News Corp. execascii117tives have reviewed any internal Tribascii117ne financial information, said a person with knowledge of the matter.

In Aascii117gascii117st, some Tribascii117ne Co. creditors lost their bid to halt the newspaper chain&rsqascii117o;s plan to exit bankrascii117ptcy withoascii117t first posting a $1.5 billion bond. Tribascii117ne owes creditors aboascii117t $13 billion. The company is valascii117ed at more than $7 billion, Tribascii117ne said in coascii117rt papers.

Company officials have said Tribascii117ne will be able to exit bankrascii117ptcy this year if federal regascii117lators approve the reorganization plan and transfers of its radio and television licenses to proposed new owners.

News Corp., foascii117nded by Mascii117rdoch, also owns Fox Broadcasting and the Twentieth Centascii117ry Fox film stascii117dio. It pascii117blishes aboascii117t 146 newspapers in Aascii117stralia, inclascii117ding The Aascii117stralian, The Daily Telegraph and the Herald Sascii117n, according to its annascii117al report.

In the ascii85.K., the company is embroiled in mascii117ltiple police investigations for hacking into mobile phones and compascii117ters by some of its reporters, as well as the bribing of pascii117blic officials. ascii85.K. aascii117thorities also are considering whether to bring corporate charges against News Corp.&rsqascii117o;s board for the alleged crimes, the Gascii117ardian reported on Jascii117ly 31.

News Corp. shares fell 2 percent to $24.91 in New York trading on Oct. 19. Class A shares have gained 40 percent this year.