Gannett jumps on potential merger

Article Excerpt

GANNETT CO. INC., $9.71 (New York symbol GCI; Cyclical-Growth Payer Portfolio, Consumer sector: Shares outstanding: 114.5 million; Market cap: $1.1 billion; Dividend yield: 6.6%; Dividend Sustainability Rating: Average; www.gannett.com) pays a quarterly dividend of $0.16 a share for an annual rate of $0.64; the stock yields a high 6.6%. Gannett rose 10% on reports that it will merge with GateHouse Media, and its parent company New Media Investment Group Inc. (New York symbol NEWM). The combined firm would publish about 265 daily newspapers. The new company could also substantially lower costs by cutting jobs and combining printing presses. What’s more, a merger would expand Gannett’s digital advertising business and cut its reliance on print ads. Gannett is still a buy. buy…