San Francisco – A businessman who claimed a ap Inc. buyout of some McClatchy Co. newspapers would stymie competition asked a federal court judge Monday for a temporary restraining order blocking the deal.
Clinton Reilly, a San Francisco real estate investor and former mayoral candidate, asked U.S. District Judge Susan Illston to block the acquisition for 10 days. The delay would allow Reilly’s lawyers to make their case.
McClatchy agreed in April to sell two California papers to MediaNews for $736.8 million and a California and Minnesota paper to Hearst Corp., which will pay $263.2 million and trade them for a stake in MediaNews.
Denver-based MediaNews, owner of The Denver Post, expects a U.S. Justice Department review to show no antitrust problems, said company president Jody Lodovic.
“If they approve us moving forward, it would seem there is no validity to the complaint,” Lodovic said. “We don’t think there’s any merit to the case.”
MediaNews said it expected to gain U.S. clearance for the deal this week and agreed to postpone its completion until after a Thursday hearing on Reilly’s request, Lodovic said.
