Chicago Sun-Times chief dismisses talk of merger

SUN-TIMES CHIEF DISMISSES TALK OF MERGER
[SOURCE: Chicago Tribune 8/10, AUTHOR: Phil Rosenthal]
Maybe it was hearing that Sun-Times Media Group's operating revenue was down around 12 percent, both for the quarter and the first half of this year, compared with a year ago. Maybe it was hearing how the company expects to save more than $5 million annually through its newly inked deal to have its papers delivered by the rival Chicago Tribune. Maybe it was the second-quarter operating loss of $80.6 million through a series of unfortunate circumstances. But one of the analysts participating in the Sun-Times Media's conference call Wednesday was moved to put the question bluntly to Chairman and Chief Executive Cyrus Freidheim Jr. "Why do we need two newspapers in Chicago?" the guy from Merrill Lynch asked. "Shouldn't these things just be mashed together?" Freidheim pointed out that the only way such a mash-up could happen is through a joint operating agreement, "because I don't think the Justice Department would approve of a merger." And JOAs, he said, have a spotty record of return for shareholders. Besides, Freidheim said, "one of the prerequisites is that one of the two newspapers be a failing newspaper, and neither one of us is willing to declare we're a failing newspaper."
http://www.chicagotribune.com/business/columnists/chi-fri_phil_0810aug10...