2012Financial Firms Win Auction for Philadelphia Newspapers
By: SHIRA OVIDE
Wall Street Journal
April 29, 2010
If confirmed by the bankruptcy court, the deal likely ends an improbable run by Brian Tierney, the former Philadelphia advertising executive who in 2006 led a buyout of his hometown papers, only to see them tip into bankruptcy on his watch.
Asked on Wednesday what he wanted his legacy to be from four sometimes rocky years at the papers' helm, the ex-ad man had a ready answer: "I was a good custodian and a good leader."
If confirmed by the bankruptcy court, the deal likely ends an improbable run by Brian Tierney, the former Philadelphia advertising executive who in 2006 led a buyout of his hometown papers, only to see them tip into bankruptcy on his watch.
Asked on Wednesday what he wanted his legacy to be from four sometimes rocky years at the papers' helm, the ex-ad man had a ready answer: "I was a good custodian and a good leader."
Mr. Tierney said he'd like to stay on for a transition period. Representatives of the winning bidders said they are evaluating candidates for the position of the papers' new chief executive.
The auction started Tuesday morning and dragged through the night and into Wednesday afternoon. The auction bidding started at less than $50 million, according to Marshall Sonenshine, an adviser to Philadelphia Newspapers LLC, the papers' parent company.
A group including Vancouver investment firm Stern Partners and another including billionaire financier Ronald Perelman and his father Raymond Perelman also presented bids.
A spokeswoman for the Perelmans said: "We joined the bidding for the papers to try and ensure that these Philadelphia institutions would continue to serve the community we love. While disappointed that we did not emerge from the auction as owners, we do feel we helped to push the senior lenders to maintain the papers as going concerns and save nearly 4,500 Philadelphia jobs."
Philadelphia Newspapers was advised by Sonenshine Partners, a New York investment bank, while Blackstone Group and Akin Gump Strauss Hauer & Feld LLP advised the winning consortium.
Sonenshine Partners is a leading independent investment bank focused on providing integrated strategic, financial and corporate advisory services. The firm was founded in 2000 and is headquartered in New York City.