This story was written by Staci D. Kramer.
A union pension fund manager has emerged as the first public suitor for the Boston Globe. Boston-based Intercontinental Real Estate Corp. confirmed its interest to the Boston Herald, saying the Globe fits its investment profile and that is has been pursuing a purchase for about 10 weeks. The company, which manages real estate and some $2,5 billion in investment funds, says it "is interested in any good investment that offers superior returns for our investors, as well as opportunities for job preservation, and even job growth, for our union investors."
The Boston Newspaper Guild separately told the New York Times Co. (NYSE: NYT) it would be interested in working out an equity deal with a new owner. In similar situations, the union swaps concessions for equity. Ongoing issues with the Guild, the Globe's largest union, could cause problems for NYTCo in sales negotiations. The Guild's members narrowly voted down a concession package Monday; the company responded with a 23 percent pay cut. The union already has appealed that to the National Labor Review Board and has told the paper that any sale would require a new contract.
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By Staci D. Kramer