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December 04, 1986 - Image 8

Resource type:
Text
Publication:
The Michigan Daily, 1986-12-04

Disclaimer: Computer generated plain text may have errors. Read more about this.

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Page 8 -The Michigan Daily -Thursday, December 4, 1986

I

Observer rejected outside offers

By MELANIE ULBRICH
The owners of the Ann Arbor
Observer received buyout offers
from several outside agencies before
they decided to sell the monthly
magazine to two staff members for
less money, Don and Mary Hunt
said yesterday.
The Hunts wanted the new
owners to have the "chemistry" to
lead the Observer in the right
direction.
Speaking to reporters a day after
the sale was revealed, the Hunts
said they approached staff members
Patricia Garcia and John Hilton
with an offer to sell because they
have the managerial skills that the
growing publication needs.

THE HUNTS said they decided
to sell the magazine because they
made the "classic mistake of the
entrepreneur:" Their small project
had become too much of a
responsibility and needed leaders
with stronger managerial skills.
Garcia and Hilton, who also
attended yesterday's press conference
at the Observer's office at 206 S.
Main St., have already begun to
assume responsibility as the
magazine's new owners.
Although neither party would
discuss the exact terms of the sale,
they did acknowledge that the Hunts
are the biggest creditors. Additional
funding is coming from First of

America bank.
University Communication
Prof. James Buckley, who
specializes in media economics,
estimated that the Observer is worth
between $750,000 and $1 million.
UNDER the terms of the sale,
Garcia and Hilton have seven years
to complete payment. A
representative of the Hunts will
remain on the Observer's board of
directors..
The Hunts expressed full
confidence in Garcia and Hilton,
saying that they are "talented
people" who would be a "welcome
addition to the New York or Los
Angeles Times."

The Observer should continue
to improve during the next five
years, Don Hunt said. He said he
thinks the Observer's circulation
will grow from 47,500 to 50,000
within the next two years.
Garcia will assume
responsibility for the business end
of the Observer as President and
Treasurer, while Hilton will take
charge of the editorial end as Vice
President and Secretary. They hold
equal responsibility.
Garcia and Hilton said their
major goal is to maintain the
integrity of the magazine. They
currently plan no major changes in
staff or format, and the Hunts will
continue to work as feature writers.

State, Republicans compromise on BEST Plan

(Continued from Page 1)
because all the mechanics have not
yet been worked out.
She said it will be several years
before the University sees any
effects of the program.

Provisions of the agreement
accepted by the Republicans
include:
-Returning initial deposit plus
any interest earned to parents if
their child chooses not to go to a

Michigan school;
-Making initial deposits
deductable from state income taxes,
and if parents choose a private
investment firm instead of the state-
run program, those initial
investments will also be tax-
deductible;
-Scrapping the entire program if
the Internal Revenue Service
disallows earnings from the initial
investment to be exempt from
federal income taxes. IRS approval

could take two to six months,
Bowman said;
-Program termination with
deposits and interest returned to
investors if fund growth is less than
tuition increases. This would force
the state, through its general fund,
to bail the program out; and,
-Higher initial deposits into the
fund for parents who want
guaranteed tuition at the University,
The Associated Press contributed
to this story.

THE ANNUAL
SALARY SUPPLEMENT
Available December 5
at the
Michigan Daily Business Office
420 Maynard
8:00am - 5:00pm
$2.00 per copy

Hawaii .5 Oh!
A half-mile front of lava poured into the sea yesterday on the island of
Hawaii as volcanic activity by an arm of Kilauea Volcano continued.
Petition prompts action
on retirement options

4

Macintosh Plus

... -

mm

(Continued from Page 1)
pension plans for 3,600 educational
institutions worldwide.
"There's other ways to invest
money and make money without
contributing to war-related activities
or the oppression of human
beings," said Education Prof.
Robert Blackburn. "We just want
the University to take that into
consideration."
In order to change the University
pension policy, the proposal must
go through a long series of

IOO'%hl

committees. The recommendation
must be made in SACUA's
retirement.comittee, passed to
CESF, forwarded to the Senate
Assembly, then given the final OK
by the University's executive
officers.
While some faculty members
want a pension fund change, both
committee members and
administrators are hesitant to make
changes because the increase in
paperwork to make the new policy
clear to all University employees.

& 4>) KINKO'S
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