McClatchy plans to sell papers in slow-growth markets along with papers like the St.Paul Pioneer Press, the Philadelphia Inquirer and Daily News. In Philadelphia State Senator Vincent J. Fumo, according to Gary Tuma, a spokesman for Fumo, is considering purchasing the Daily News with a group of investors.

"The driving motivation would be keep Philadelphia a two-newspaper town," Tuma said. The Inquirer and the Daily News share the same building, raising concerns that if one is sold, the other may close.

In an attempt to create a “worker friendly” buyout of the papers, The Newspaper Guild-Communication Workers of America, which represents a majority of employees at the 12 papers to be sold, has expressed its interest. With help from Yucaipa Cos, a “worker-friendly investment fund,” The Newspaper Guild-Communication Workers of America can put forth a bid.

Both the privately-held newspaper company MediaNews Group and the nation's largest publisher, Gannett Co. are also potential bidders.

Other papers considered for sale include the San Jose Mercury News, Contra Costa Times, Fort Wayne News-Sentinel and Wilkes-Barre Times Leader.

Source: Morningstar.com [Through the Ifra Executive News Service Letter]