New Bidding For Philadelphia Newspapers Begins Thursday

A local philanthropist is back in the hunt for ownership of the Philadelphia Inquirer and Daily News.

KYW's Ian Bush reports that Ray Perelman is again throwing his hat in the ring for the papers and Philly.com, and his bidding group is one of two players that will take part in an auction tomorrow in federal bankruptcy court.

"I think it's part of the city, and it's important to the city. It should be locally owned. I know I read it every day, and I would be lost without it."

Perelman and his group had to meet the $50 million minimum cash bid -- as have the senior lenders who won the last auction in April.

That $139 million deal was tied to agreements with the papers' unions, and collapsed when the creditors couldn't come to contract terms with the Teamsters drivers.

This time, though, labor deals are not a condition of sale -- and the lenders vow to win again.

Perelman also was part of the first auction, joining local investors who pushed the bidding into nine figures.

Now, however, the sky might not be the limit. At a hearing last week, the creditors' lawyer said "the economics have changed" since the last go-round.