Times Mirror Corp., publisher of The Los Angeles Times and the Sun papers in Baltimore, unveiled plans yesterday to create two new classes of common stock to solidify the control of the Chandler family and current officers, who already own 41.7 percent of the company.
The proposal, which must be approved by a majority of stockholders, would create a new class of common stock with 10 votes per share.
This new "Class C" stock, which would be distributed to all holders of common stock, would not be freely tradeable. A shareholder wishing to sell the Class C stock would first have to convert it to common stock.
Since the Chandler family plans to retain its Class C stock, the plan should increase its control. Times Mirror also created a new "Class B" stock with inferior voting rights designed to permit acquisitions without diminishing the family's control.
Said Chairman Robert F. Erburu, "The companies that publish The Wall Street Journal, The New York Times and The Washington Post, corporations widely regarded as peers of Times Mirror, have in place differential voting structures. We believe that Times Mirror should also have such a capital structure to promote continued independence and integrity of our media operations."