Owners of Baltimore Sun OK Sale to Times Mirror

Members of the families that control A. S. Abell Co. have ratified the sale of their holdings, including the Baltimore Sun and Evening Sun, to Times Mirror Co. for $600 million.

The proposed sale to the owners of the Los Angeles Times and seven other newspapers drew quick approval and no discussion at a shareholders meeting Thursday.

At that meeting, 135 shareholders were provided with a financial statement that details previously undisclosed financial information, including the comparison of Abell’s 1981 profit of $1.5 million to last year’s profit of $20.8 million. The profit was boosted by the sale of a radio station for $6.7 million, as well as strong growth, according to the report.

The sale must still receive federal regulatory approval.

Abell officials said Times Mirror is trying to sell WMAR-TV in Baltimore because Federal Communications Commission regulations prohibit ownership of both a television station and newspaper in the same market. Abell officials say they expect to complete the entire transaction by Dec. 1.

According to the financial documents supplied to the Sun, Abell’s operating profit margin was 13.5% in 1985. The operating profit margin was less than 1% in 1981, in part because of the cost of new presses. Income from continuing operations was more than $14 million in 1985, compared to $1.4 million in 1981.

The company has reduced its long-term debt to $8.3 million in 1985 from $18.9 million in 1981, while working capital grew to more than $26 million from $4.5 million in the same period.

President and Publisher Reg Murphy, who joined the newspaper in 1981, will be among those earning millions when the sale is completed. His contract with Abell contained a stock option agreement under which he purchased about 2,500 shares of stock, worth about $14.5 million because of the sale.