This is a weird story to read out of context
http://www.mercurynews.com/mld/mercurynews/news/breaking_news/14347455.htm
"The McClatchy newspaper group of Sacramento offered $66.50 a share for Knight Ridder -- only a couple dollars a share more than what the San Jose company's stock was worth nearly year earlier when its major shareholders began pressuring the board to sell Knight Ridder. If Knight Ridder rejected McClatchy's offer, it faced the prospect of massive cost-cutting to placate the dissident shareholders. But Knight Ridder's investment bankers advised such a move could boost its stock price or sink it, according to documents filed Friday by McClatchy with the Securities and Exchange Commission."
"The McClatchy newspaper group of Sacramento offered $66.50 a share for Knight Ridder -- only a couple dollars a share more than what the San Jose company's stock was worth nearly year earlier when its major shareholders began pressuring the board to sell Knight Ridder. If Knight Ridder rejected McClatchy's offer, it faced the prospect of massive cost-cutting to placate the dissident shareholders. But Knight Ridder's investment bankers advised such a move could boost its stock price or sink it, according to documents filed Friday by McClatchy with the Securities and Exchange Commission."