Taylor, Opperman bid for stake in Star Tribune

Two of Minnesota's best-known businessmen have launched a bid to become minority owners of the Star Tribune.

Glen Taylor, owner of the Minnesota Timberwolves, and Minneapolis publisher Vance Opperman want to acquire 25 percent to 35 percent of the newspaper's equity. Their offer is valued at $6.25 million to $8.75 million.

The bid values the Minneapolis-based newspaper as a whole at $125 million, within the value range prepared by Blackstone Advisory Services while the paper was in bankruptcy proceedings.

Both men expressed their belief that the Star Tribune is a community asset that should have strong community ownership. However, they made it clear in an interview that their motive is business-driven and that their offer is not a charitable contribution.

"The Star Tribune has to pay its own way. It has to be a profit-making entity," said Opperman.

"It's important to have good writers. It's important to have a good editorial staff. The challenge is how do you do advertising in this environment?" Taylor said. "Vance and I have talked about it. We're not sitting here with the answers but the goal is to make the paper a profitable enterprise."

The acquisition vehicle created by Opperman and Taylor is called the Atticus Fund. The two men own 99 percent of the fund, with 1 percent held by Stephen Pflaum, the group's legal adviser. The name of Pflaum's grandson was chosen as the partnership name.

A prospectus outlining the proposed transaction is being delivered to the newspaper's more than 40 shareholders this morning.

The Star Tribune's largest shareholders include private equity groups Wayzata Investment Partners and Angelo Gordon & Co., as well as investment bank Credit Suisse, CIT Bank and an affiliate of GE Capital.

The newspaper emerged from bankruptcy in September after creditors agree to swap $480 million in debt for control of the company plus $100 million in new debt.

Opperman and Taylor have informed the board of the Star Tribune's parent company, Star Tribune Media Holdings, of their intent to solicit shares. The purchase offer expires Nov. 30.

Board chairman Mike Sweeney said he is "delighted" with the interest Opperman and Taylor are showing in owning a stake of the Star Tribune.

"We're gratified that such prominent local businessmen and investors are excited about investing in the Star Tribune," Sweeney said. "We'd be happy to welcome Vance and Glen into the ranks."

The Atticus prospectus states that Opperman, 66, and Taylor, 68, intend to be "longterm" shareholders, that they might seek to obtain additional shares at a later date and that they might ask the existing Star Tribune board to increase in size by up to two seats, presumably for themselves.

The Atticus principals said they would not involve themselves in decisions about editorial content.

"An independent newsroom is important to them," Pflaum said.

Taylor, a Mankato businessman, has owned the Timberwolves since 1994. His fortune was made with Taylor Corp., a once-small printing business specializing in wedding invitations that grew into a multinational printing and electronics business. Forbes magazine listed Taylor's worth at $2.2 billion earlier this year.

Opperman, a lawyer, is chief executive officer of VKO, an investment company bearing his initials and has interests in publishing, information technology and biomedical technology. Among the publications in Opperman's portfolio are Mpls.St.Paul magazine and Twin Cities Business. Opperman was president of West Publishing Co., where his father Dwight was chairman and CEO. West was sold to what became Thomson Reuters Corp. in 1996 for $3.4 billion.

Ideologically, Opperman and Taylor are opposites. Opperman is a longtime major fundraiser for Democratic candidates while Taylor served in the Minnesota Senate as a Republican, becoming minority leader in the mid-1980s.

David Phelps • 612-673-7269