(AP) Newspaper publisher Knight Ridder Inc., under pressure from its largest shareholders, said Monday it would consider selling the company and other steps to boost shareholder value.

The San Jose, Calif.-based publisher of The Miami Herald, the San Jose Mercury News and 30 other newspapers said it would work with longtime financial adviser Goldman Sachs & Co. to explore a possible sale and other options.

Knight Ridder also said it had changed its by-laws to allow shareholders to submit proposals at its annual meeting, currently scheduled for next April, and also to nominate directors.

In a prepared statement, Knight Ridder said there was no assurance that there would be a transaction. The company also said it didn't intend to provide any updates on the process "unless and until" its board has approved a specific transaction.

Last week Knight Ridder's largest shareholder, Private Capital Management LP of Naples, Fla., threatened to nominate its own slate of directors at the newspaper publisher's next annual meeting after receiving only a "limited response" to the "serious concerns" that it and other shareholders had raised about the company.

Private Capital Management owns 19 percent of Knight Ridder and has significant stakes in other publicly held newspaper publishers. PCM first agitated for a sale of Knight Ridder in early November, and its call was soon seconded by Knight Ridder's No. 3 shareholder Harris Associates LP, a Chicago-based money manager. Harris has an 8.2 percent stake in Knight Ridder.

A third shareholder, Southeastern Asset Management Inc., which holds 8.9 percent of Knight Ridder, also has said it would take a more active role in considering future options for the company.

Newspaper stocks have fallen out of favor with investors this year because of concerns about waning advertising and circulation as more people go online for news. However, they remain generally profitable.

Given the dismal view that many investors have of the newspaper business, it is unclear how many bidders will emerge for Knight Ridder.

Knight Ridder's shares had been down 20 percent this year prior to PCM's initial broadside against the company in early November, in line with several other major newspaper publishers. In early trading on the New York Stock Exchange Monday, the shares rose $1.28, or 2 percent, to $63.78. They have traded between $54.42 to $74.07 in the past 52 weeks.

Knight Ridder is the second-largest newspaper publisher in the country, after Gannett Co.

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