Part of newspaper's ownership rejects buyout offer from other owners

A FRESH ROUND of volleys was fired yesterday in the ongoing battle between warring factions of Interstate General Media, the parent company of the Daily News, Inquirer and Philly.com.

George Norcross III, IGM's co-managing partner, and William Hankowsky, one of the company's managing directors, released a joint statement detailing a $29 million offer to buy out Lewis Katz, the company's other co-managing partner, and chairman H.F. "Gerry" Lenfest.

The offer was rejected.

The buyout offer was intended to end a legal dispute that began this month when Katz and Lenfest sued IGM's other owners after publisher Bob Hall fired Inquirer editor Bill Marimow.

The suit, filed in Common Pleas Court, contends that Hall needed the blessing of both Katz and Norcross to dismiss Marimow, and seeks to have Marimow reinstated.

Norcross and three other owners, including Hankowsky, in turn filed a lawsuit in Delaware Chancery Court that contends that Hall had the authority to fire Marimow - and that Katz violated a pledge not to interfere with the operations of the newspapers and their website.

Norcross and Hankowsky said yesterday that they "did not want or initiate the litigation that has created a sideshow that will ultimately waste hundreds of thousands, if not millions, of dollars in legal fees that could be used to further strengthen and build the company."

They offered to wire the $29 million to Katz and Lenfest within 24 hours of an agreement.

"We didn't get into this for economic purposes. We invested because of public service and our civic duty," Katz and Lenfest said in their own joint statement.

Katz and Lenfest said they were interested in hashing out a "buy-sell agreement with a shotgun clause," in which one party would be forced to buy out the other.

Somewhat lost yesterday in the back-and-forth between the owners was an announcement that Michael Lorenca, IGM's chief operating officer and associate publisher, had resigned.

In an email to IGM employees, Hall said Lorenca "stated over the last several months that he has struggled under the current governance and ownership structure . . . This is a regrettable consequence and unfortunate outcome of the pending litigation."

Last night, the Newspaper Guild of Greater Philadelphia released a statement, stressing that it is not taking sides in the bitter ownership battle. Earlier this week, the union said it had lined up a wealthy suitor who is potentially interested in purchasing the company.

Source: Philly.com