McClatchy (MNI) Tumbles as WSJ Considers CEO's Move
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Shares of The McClatchy Company (NYSE: MNI) are down in pre-market trading on a concerning article published this morning in the Wall Street Journal. McClatchy most recently traded at $3.05, down 13.6% from yesterday's closing price of $3.53.
The WSJ believes the recent announcement by McClatchy's CEO, Gary Pruitt, to quit as a trustee of the McClatchy family trusts, could be a signal of things to come. Although the move represents "good corporate governance", as the WSJ puts it, it could "herald a painful deal for McClatchy's long-suffering shareholders."
The article believes that yesterday's move in McClatchy stock (down 4%) could have been the realization by investors that the company will now likely announce a refinancing deal, rather than announcing that it will go private. In either case, the article points out that fundamentals in the newspaper industry are only getting worse and McClatchy will need to make a decision very soon. According to the WSJ, "The best solution for McClatchy is to figure out a way to convert some of its $2.1 billion debt to equity."
The McClatchy Company operates as a newspaper company in the United States.
The WSJ believes the recent announcement by McClatchy's CEO, Gary Pruitt, to quit as a trustee of the McClatchy family trusts, could be a signal of things to come. Although the move represents "good corporate governance", as the WSJ puts it, it could "herald a painful deal for McClatchy's long-suffering shareholders."
The article believes that yesterday's move in McClatchy stock (down 4%) could have been the realization by investors that the company will now likely announce a refinancing deal, rather than announcing that it will go private. In either case, the article points out that fundamentals in the newspaper industry are only getting worse and McClatchy will need to make a decision very soon. According to the WSJ, "The best solution for McClatchy is to figure out a way to convert some of its $2.1 billion debt to equity."
The McClatchy Company operates as a newspaper company in the United States.
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