By Ralph Cipriano
for Bigtrial.net
All the details are set regarding the auction of Interstate General Media [IGM], the parent company of The Philadelphia Inquirer, Philadelphia Daily News and philly.com.
The "English-style auction" will begin at 9:30 a.m. May 27 at the law offices of Dechert LLP, at 2929 Arch Street in Philadelphia, according to documents filed in Delaware Chancery Court.
Trustee William B. Chandler III, a former chancellor of the Delaware Chancery Court, will officiate. The two warring ownership groups will be seated in separate rooms so that "each Group can consult with each other regarding bidding outside of the presence of the other Group."
The first bid will be made by General American Holdings Group, the majority ownership faction that includes owners George E. Norcross III, William P. Hankowsky, and Joseph E. Buckelew. Norcross has previously told the chancery court that the opening bid will be $77 million, an amount subsequently agreed to by the court. Then, the Intertrust Group comprised of minority owners Lewis Katz and H.F. "Gerry" Lenfest will have exactly 10 minutes to submit another incremental bid in writing that must be "exactly $1,000,000 higher than the prior bid."
It could all be over in 10 minutes if Katz and Lenfest don't bid $78 million. According to court documents, the bidding concludes when "either group fails to submit an Incremental Bid within the ten-minute time limit."
The only remaining question is whether the media will be allowed to sit in on the auction and report the results. Amazingly, the Katz-Lenfest faction wants the auction closed; they don't even want the amount of the winning bid to be divulged, according to a letter filed late Friday in Delaware Chancery Court by a lawyer for the General American group.
In the letter, the Norcross faction asks for "an open and transparent process."