Zuckerman wins 'Daily News' battle

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The Independent Online
A NEW YORK bankruptcy court yesterday approved the sale of the Daily News, the bankrupt Maxwell tabloid, to Mortimer Zuckerman, the property developer, after a protracted battle for the support of the newspaper's employees.

Mr Zuckerman will pay about dollars 18m ( pounds 11m) for the Daily News, a price that awards the newspaper's creditors, who are owed dollars 35m, less than 20 cents in the dollar for its debts. The estate of Robert Maxwell, who acquired the tabloid last year before his death, will see no proceeds from the sale.

Only a month ago, Conrad Black, the Canadian owner of the Daily Telegraph, seemed the likely buyer of the Daily News. But he withdrew his bid when he was unable to win union support.

Mr Zuckerman, who struck up an early alliance with the delivery drivers, now has the support of eight of the nine unions, whose endorsements were critical to winning approval of the bankruptcy court.

The deal is still subject to higher offers until it closes in November.