Tuesday, January 12, 1999
Schott not expected to accept $55M bid
Deadline Friday for Ledecky offer
BY GEOFF HOBSON
The Cincinnati Enquirer
Reds CEO and President Marge Schott isn't expected to accept a $55 million cash bid for all of her 6.5 shares from Wash ington, D.C., businessman Jon Ledecky, an offer that expires Friday.
But sources say Major League Baseball has no immediate qualms about Schott moving slowly on a sale of the Reds.
In fact, officials may allow the status quo to remain for the next two years.
Yet MLB sources say despite observations from Cincinnati business and Reds' insiders that Schott won't sell, Commissioner Bud Selig has taken her at her word that she will try to find a buyer for at least 5.5 shares by March 31.
Schott's control of the team expires on the last day of 2000 and transfers to the Reds' limited partners.
Although insiders doubt Schott will accept Ledecky's offer or any other not near her $78 million asking price, MLB is focusing on other issues as the game's owners convene later this week in Carlsbad, Calif.
Schott reportedly isn't on this
week's agenda, but could be in March. March 31 is MLB's deadline for Schott finding a buyer.
The deadline was originally Dec. 31, but MLB granted her an extension as long as she agreed to keep John Allen in charge of the team's daily affairs. Allen has run the club for nearly three years since Schott was suspended for insensitive remarks.
Some sources envision Schott stalling and going into 2001 with her 6.5 shares. Although she won't have control, she will still own the biggest chunk of the team at 42 percent.
But MLB is confident Schott will sell at the right price because the clock is ticking on the value of her two controlling interests. If she doesn't, MLB and Schott could keep signing renewals of the agreement to keep Allen in charge until Dec. 31, 2000.
“It seems to be working,” said a source close to the limited partners of the agreement. “It's been quiet, business is being conducted and that's a positive.”
Insiders say Schott hasn't even responded to Ledecky's bid of last month because he also transmitted a proposal to the limited partners. Because the limiteds have the right to match offers, they are going to have to be comfortable with terms of any deal.
Ledecky, 40, offered the partners a stake in the sale, as well as a spot on a board of directors that would direct Ledecky, the proposed managing general partner.
Schott and Ledecky have refused comment.
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