DENVER POST PARENT SEEKING TO DOUBLE STAKE IN MONSTER

Activist investor MediaNews Group sought to almost double its stake in Monster Worldwide, keeping the pressure on the job-listing company, which reported a surprising loss Friday.

MediaNews, already the largest stakeholder, with a nearly 12 percent stake, launched an effort to buy a further 10 percent stake in Monster at $3.70 a share. MediaNews can’t build up more than a 25 percent stake without tripping Monster’s change-of-control mechanism in a credit agreement.

The offer from MediaNews — parent of The Denver Post — represents an 8.8 percent premium to the share price in Monster’s pact with Dutch recruitment firm Randstad Holding NV. In August, Randstad agreed to buy Monster for $429 million, or $3.40 a share.

Monster continued to recommend that stakeholders accept the Randstad offer Friday, saying it was the best deal available because stockholders would receive cash for all shares.

“This is yet another attempt by MNG to derail Monster’s transaction with Randstad in order to take control of the company without paying a control premium to all Monster stockholders,” CEO Tim Yates said in prepared remarks.

Monster on Friday reported it swung to a loss of $180.5 million, or $2.03 per share, during its third quarter compared with a profit of $175.8 million, or $1.98 a share, a year earlier. On an adjusted basis, the company posted a loss of 5 cents a share. Dow Jones Newswires BBB