New York Times taps Bank of America amid ValueAct challenge

The New York Occasions constructing is seen in Manhattan, New York, U.S., August 3, 2020. REUTERS/Shannon Stapleton

Aug 12 (Reuters) – The New York Occasions Co (NYT.N) has turned to Financial institution of America Corp (BAC.N) and legislation agency Sidley Austin LLP for recommendation on find out how to deal with a possible board problem from ValueAct Capital Administration LP, in line with individuals aware of the matter.

ValueAct, a San Francisco-based hedge fund, disclosed on Thursday that it owns an almost 7% stake within the New York Occasions and argued the newspaper firm may develop extra rapidly by aggressively advertising its all-access digital bundle that provides subscribers greater than primary information. learn extra

The Ochs-Sulzberger household controls the New York Occasions by way of dual-class shares that enable it to put in 9 administrators on the corporate’s 13-member board.

The construction of the board would give ValueAct scope to problem the corporate for one of many different 4 board seats in a shareholder vote. The New York Occasions is working with the bankers and attorneys to organize for this chance, the sources stated.

Proxy solicitor Okapi Companions LLC, which works with corporations as they rely votes in shareholder conferences, can be advising the New York Occasions, the sources added, requesting anonymity as a result of the matter is confidential.

Representatives for the New York Occasions, ValueAct, Sidley, Okapi and Financial institution of America both declined to remark or couldn’t be reached for remark. The New York Occasions stated in a press release on Thursday that its administration had met with ValueAct to trade views.

In a regulatory submitting on Thursday that disclosed its stake, the hedge fund stated it could have discussions with the New York Occasions to see “whether or not it is sensible for a ValueAct Capital worker to be on the issuer’s board of administrators.”

The New York Occasions has expanded past its core newspaper providing lately to incorporate the sports activities web site The Athletic, product evaluate web site Wirecutter, a cooking app and video games. Whereas its digital subscriptions have grown, its shares are value about 30% lower than what they have been valued at a couple of yr in the past as a result of advertisers have in the reduction of on spending amid fears of an financial downturn.

ValueAct, based by Jeffrey Ubben twenty years in the past and now run by Mason Morfit, usually avoids difficult corporations for board seats by way of proxy contests and infrequently secures board illustration with the settlement of corporations they put money into.

ValueAct investments have included Microsoft Corp (MSFT.O), the place Morfit had a board seat, Adobe the place former ValueAct accomplice Kelly Barlow had a seat and Citigroup Inc (C.N).

Reporting by Svea Herbst-Bayliss in Boston; Enhancing by Greg Roumeliotis and Aurora Ellis

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