Investors urge Sun-Times sale

A group of shareholders led by investment manager K Capital Management has urged newspaper publisher Sun-Times Media Group Inc. to put itself up for sale immediately, according to a regulatory filing Thursday.

K Capital said in the filing with the Securities and Exchange Commission that “immediate action must be taken to preserve shareholder value due to the company’s recent operational deterioration.”

K Capital reported holding a 9.9% stake in the Chicago company.

The Boston-based shareholder also said Sun-Times Chairman Raymond Seitz should step down because “his personal travel schedule and other interests do not allow him to provide present and active leadership.” K Capital also wants Gordon Paris to resign from the board of directors.

K Capital also said the company should appoint two institutional shareholders to the board and repurchase Sun-Times shares with the remaining allowance under its current buyback program.