Gannett Shares Inch Back from CEO Concerns
June 19, 2009
McLEAN, VA.: Shares of Gannett have slipped 8 percent since the company announced its chief executive was taking medical leave. The media company announced Monday that Chairman and CEO Craig Dubow was taking temporary medical leave following a back surgery. Gannett (NYSE: GCI) CFO and executive vice president, Gracia Martore, is taking the reins while he’s out.
“I look forward to a full recovery,” Dubow said in a statement. “I am confident that Gracia and our strong, experienced management team will continue to execute our strategic plan while I am recovering.”
Wall Street nonetheless backed away from Gannett, which dropped half of its value since the first of the year when shares traded for $8 or more. Shares opened this week at more than $4, but have since fallen, bottoming out yesterday at below $3.60 and trading in early afternoon today at just under $3.70.
Reuters reported that the heavily indebted media company will cut as many as 4,500 more jobs next month, and issue a 10 percent wage cut. The company has already imposed two, one-week unpaid furloughs during the first half of 2009. -- Deborah D. McAdams