Gannett Foundation to Sell Its Stock in Newspaper Chain

Trustees of the Gannett Foundation, the largest shareholder in Gannett Co. Inc., voted unanimously today put its 10% block of stock up for sale.

The foundation issued a news release in Los Angeles at the 104th annual convention of the American Newspaper Publishers Assn. announcing its decision.

The release said the foundation would prefer to place the stock in the hands of the Gannett Co. or an employee-stock owner plan if possible.

“But our financial advisers will explore all alternatives,” the announcement said.

At Tuesday’s New York Stock Exchange closing price of $35.5 a share, the foundation’s 15,940,185 shares is worth about $566 million. The foundation said that at times the shares have been worth as much as $900 million.

“IRS regulations, which require foundations to pay out an amount equal to 5 of their assets annually, force us to seek higher income than common stock dividends pay,” the foundation said in a statement.