Sun-Times Media board continues to identify board candidates, will consider shareholder's nominees

By Lisa Kerner

Charlotte, N.C., Nov. 7 - Sun-Times Media Group, Inc. chairman of the board Raymond G.H. Seitz, in response to a shareholder's concerns, said his desire for a "careful and considered process to recruit the best new directors possible" should not be considered as entrenchment by the existing directors.

Seitz was reacting to Davidson Kempner Partners' recommendation that there be a change of leadership at the company, both at the chief executive officer level and board of directors level.

In an Oct. 31 letter to Sun-Times, investors led by Davidson Kempner said they believe the company's entire board should be resized to five directors and reconstituted with the exception of Robert Poile, a large Sun-Times shareholder.

The investors said they will seek change in the board at the board's next meeting on Nov. 17, it was previously reported.

Seitz said the board has begun to identify potential new directors, with a preference for those experienced in the media industry and the Chicago market, according to his Nov. 7 letter to Davidson Kempner included in a form 8-K filed with the Securities and Exchange Commission.

The board, said Seitz, will continue the process of vetting its identified candidates and will take into account Davidson Kempner's proposed candidates.

"It was and remains the board's position that it may be appropriate to restructure the board over the course of the next few months so that a renewed (and perhaps smaller) board may guide the company through the difficulties it faces in 2009," Seitz said in his letter.

Davidson Kempner is nominating for election to the Sun-Times board:

• Jeremy L. Halbreich, former president and general manager of the Dallas Morning News;

• Robert A. Schmitz, a partner at Quest Turnaround Advisors;

• Lee Hillman, former chief financial officer of Bally Entertainment Corp. and later the chairman and CEO of Bally Total Fitness Holding Corp.; and

• Michael E. Katzenstein, founder and principal of CXO, LLC, a restructuring and turnaround management firm.

Davidson Kempner beneficially owns 5.9% of the Chicago-based newspaper company.

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