Court clears way for newspaper bid by Murdoch

NEW YORK - News Corporation will make a formal bid for interim control of the New York Post on Monday after a decision by a Manhattan bankruptcy court late on Thursday to name an examiner to manage the tabloid's finances, writes Larry Black.

The court decision essentially stripped control of the struggling newspaper from its designated buyer, the New York property developer Abe Hirschfeld, who tried yesterday to cut off the Post's access to operating funds.

News Corp's offer, extended verbally to the bankruptcy court in a late evening telephone conference call, would cover the Post's operating expenses for the next 60 days - about dollars 9m - while it seeks a waiver from US regulations that bar it from buying the paper again.

Rupert Murdoch, News Corp's chief executive, tried unsuccessfully six years ago to win a similar waiver, allowing him to continue to own the Post, even though he racked up losses of more than dollars 150m between 1976 to 1988. The waiver was needed because WNYW, the New York affiliate of Mr Murdoch's Fox television station, broadcasts in the same market.

But a News Corp spokesman confirmed yesterday that Mr Murdoch was confident of receiving regulatory approval, after a week of intense lobbying involving New York Governor Mario Cuomo and several US senators.

News Corp's general counsel, Arthur Siskind, said the company would also make an offer to the Post's creditors to settle their claims against the paper. These total some dollars 20m, most of which is owed to the principal lender, Bankers Trust.