New York Times rejects Welch bid for Globe: source

By Robert MacMillan

NEW YORK (Reuters) - New York Times Co. (NYT.N) has rejected a proposal from a group of Boston businessmen, including former General Electric Co. (GE.N) chief Jack Welch, to negotiate a purchase of the Boston Globe newspaper, a source familiar with the matter said on Wednesday.

New York Times Chief Executive Officer Janet Robinson wrote in a November 17 letter to the investor group that she took the group's proposal to the company's board, but that it was not interested in pursuing a sale, the source confirmed.

The Globe reported the news in its Wednesday edition, citing two executives who had seen the letter.

The letter was a response to a request from Welch for exclusive rights to negotiate with Times Co. over an acquisition, the source also confirmed.

The investor group does not plan to abandon its effort, the Globe report said, citing executives close to the group.

"I would say this is the beginning of an extended negotiation," said Michael Wolff, media columnist for Vanity Fair, who has closely followed corporate developments at Times Co.

"Ultimately, if they are going to sell the Globe, they want the most money they can possibly get," he said. "At first blush I don't think you want to say that you're highly available."

The New York Times Co. had no comment. Representatives for the investor group could not immediately be reached.