Hedge Fund Discloses Nearly 10% Stake in NY Times

Christopher Alleva
Harbert Management and their partners have disclosed that they now own 14 million shares of the New York Times Company slightly less than 10% of the shares outstanding. Harbert and their partners accumulated this position over a 49 day period commencing in December. They acquired the shares for an average price of $16.49.

A companion development is the divestment by a couple of major longtime shareholders. Barclays has reduced their position by nearly 3 million shares, a 40% decrease. Another major shareholder sliced their holdings from 8.5 million shares down to 1.1. Thursday is the deadline for major shareholders to report their holdings. These reports may show even more turnover in the shareholder base. 

Clarification

In an update to an earlier story I wrote about the Times compliance with a minimum stockholders equity requirement covenant  

I have new information to report. My original observation was quoted by others, so I want to clarify the matter to avoid any ambiguity.  

At the time of the previous article, I suggested that the dividend increase was inching them dangerously close to violating the equity covenant. Rereading the notes to the financial statements and the bond indentures, turned up some inconsitencies that needed resolution. I contacted the Times Investor Relations Department to discuss the matter and they explained the $800 or so million in non-cash write-down's for the New England Media Group and other impairments is added back to stockholders equity for the purposes of this bond covenant.
Harbert Management and their partners have disclosed that they now own 14 million shares of the New York Times Company slightly less than 10% of the shares outstanding. Harbert and their partners accumulated this position over a 49 day period commencing in December. They acquired the shares for an average price of $16.49.

A companion development is the divestment by a couple of major longtime shareholders. Barclays has reduced their position by nearly 3 million shares, a 40% decrease. Another major shareholder sliced their holdings from 8.5 million shares down to 1.1. Thursday is the deadline for major shareholders to report their holdings. These reports may show even more turnover in the shareholder base. 

Clarification

In an update to an earlier story I wrote about the Times compliance with a minimum stockholders equity requirement covenant  

I have new information to report. My original observation was quoted by others, so I want to clarify the matter to avoid any ambiguity.  

At the time of the previous article, I suggested that the dividend increase was inching them dangerously close to violating the equity covenant. Rereading the notes to the financial statements and the bond indentures, turned up some inconsitencies that needed resolution. I contacted the Times Investor Relations Department to discuss the matter and they explained the $800 or so million in non-cash write-down's for the New England Media Group and other impairments is added back to stockholders equity for the purposes of this bond covenant.