Article: Publisher gets an ultimatum; Citing Knight Ridder's poor performance, the chain's largest stockholder demanded the company put itself up for sale. The Pioneer Press is among KR's holdings.(BUSINESS)

Byline: John Reinan; Staff Writer

A large investor is demanding that Knight Ridder Inc., the nation's second-largest newspaper chain, put itself up for sale or auction off its flagship publications, which have wrestled with flat advertising revenue and stagnant or declining circulation.

In a letter Tuesday to the Knight Ridder board of directors, the investment firm Private Capital Management (PCM) threatened to launch a hostile takeover if the company does not move to "aggressively pursue" a competitive sale.

It's too early to say whether any suitors will emerge for Knight Ridder or whether PCM will be able to make good on its threat to oust a ...

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