Perelman says $85 million is final offer for The Philadelphia Inquirer and Daily News

Perelman says offer is final for Inquirer, News

PHILADELPHIA — Philanthropist Raymond Perelman says $85 million in cash is his final offer for The Philadelphia Inquirer and Daily News at a bankruptcy auction.

Perelman’s bid is $20 million less than the $105 million bid made by creditors hoping to take over the company.

Still, a lower bid can be deemed the “highest and best” offer in a bankruptcy case.

Lawyers for the current owners are weighing the offers during a break in Thursday’s court auction.

A group of local investors paid $515 million for the company in 2006 but are selling it of to escape bankruptcy protection.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PHILADELPHIA (AP) — Philanthropist Raymond Perelman has increased his cash bid to $85 million for The Philadelphia Inquirer and Daily News.

That’s still $20 million less than the $105 million opening bid posted by creditors.

However, the seller could potentially deem Perelman’s bid a better offer for the company based on non-cash terms involved in the deal. Perelman’s opening bid was $50 million.

The two sides are considering their next moves in the bankruptcy court auction.

The creditors won a spring auction with a $139 million deal that included $105 million in cash. But creditors failed to close on that sale, prompting the need for Thursday’s auction.

The company is being auctioned off by local investors who bought it for $515 million in 2006 and filed for bankruptcy in 2009.