Major investor turns up heat on Knight Ridder

NEW YORK — The largest shareholder in Knight Ridder is turning up the pressure on the newspaper

publisher, saying in a

regulatory H ling Thursday that it may nominate a slate of directors at the company’s annual meeting next year.

Private Capital Management, an investment H rm based in Naples, Fla., said itwas considering that and other moves to boost the value of

Media

its 19% stake in Knight Ridder after seeing only a “ limited response” to the “ serious concerns” about the company raised by PCM and other shareholders.

Knight Ridder is the second- largest publisher of newspapers in the USA, behind Gannett. The 32- paper chain includes The Miami Herald, the San Jose Mercury News and The Philadelphia Inquirer.

The company is facing a growing shareholder revolt after failing to lift its long- sagging share price. The effort involved a stock buyback, raising its dividend, making several newspaper deals and cutting jobs.

The shares of most major newspaper companies are down sharply this year on investor concerns about their future prospects for growth, the migration of advertiser dollars and news consumers to the Internet, higher newsprint prices and a slump in newspaper circulation. Despite those concerns, however, newspapers remain generally pro H table businesses.

Last week, PCM urged Knight Ridder to “ aggressively” pursue a sale of the company or face dire consequences including a possible shake- up of the company’s management and board of directors.

Two other shareholders also stepped forward, one joining the call for a competitive sale of the company and another saying it would take an active role in discussing future options for the San Jose, Calif.- based company.

PCM and the two other shareholders — Harris Associates and Southeastern Asset Management— control 36% of Knight Ridder.