The union representing many Knight Ridder Inc. employees has teamed up with a private equity firm in a bid to purchase nine of the publishing company's 32 daily newspapers, including the San Jose Mercury News and the Monterey Herald.
The Newspaper Guild-Communication Workers of America said it has entered into a partnership with the Yucaipa Cos., chaired by businessman Ron Burkle, as a step toward buying some of the chain's publications. Besides the Northern California papers, the list includes the Philadelphia Inquirer, the Philadelphia Daily News and the Saint Paul Pioneer Press.
Knight Ridder, the second-largest newspaper chain in the country with 18,000 employees, is considering selling the company in reaction to pressure from shareholders.
The corporation has said it is looking for a buyer that would take over the entire company.
But in December, the Newspaper Guild announced its plan to take part in the bidding for the nine newspapers. The union named two advisory firms, Duff & Phelps Securities of Chicago and Ownership Associates Inc. of Cambridge, Mass., which recruited Yucaipa to the purchase plan.
The two firms will continue to work with Yucaipa in an effort to come up with a "worker-friendly" agreement for the papers, the union said.
One plan would allow Guild members and other union and nonunion employees "to invest side by side with Yucaipa, thereby creating a partially employee-owned entity."
Under such a plan, the Newspaper Guild "will not be an investor in a future entity," the union said.
"There is no guarantee that our interest in preserving the union properties will be taken up by the prevailing acquisition group," Newspaper Guild President Linda Foley said in a statement. "But at the very least, with Yucaipa's critical support, we should be seen as an attractive partner."
In a statement, Burkle said, "We believe in the future potential of these newspapers."
A Knight Ridder spokeswoman said the company had no comment on the union's announcement.
E-mail Benjamin Pimentel at bpimentel@sfchronicle.com.
