NEW YORK — Its $600-million acquisition of the publisher of the Baltimore Sun will pare less than 20 cents per share from net income of Times Mirror Co. in 1987, the first full year following the acquisition, Times Mirror Chairman and Chief Executive Robert F. Erburu said Thursday.
The negative effect on earnings will continue, while diminishing, through 1990, Erburu told a meeting of securities analysts here. Times Mirror announced Wednesday that it will acquire A. S. Abell Co., privately held publisher of the Sun and two TV stations, for $600 million cash, in a deal that John Reidy, an industry analyst for Drexel Burnham Lambert, called "momentous." The Sun, among the nation's most honored newspapers, has been profitable in a market that analysts consider to be on the upswing.
Wall Street reacted to the acquisition with enthusiasm Thursday. On the New York Stock Exchange, Times Mirror shares soared $5.25 to close at $68.25, a 52-week high for the stock. About 193,300 shares were traded.
Erburu told the analysts that Times Mirror, publisher of the Los Angeles Times as well as Newsday in New York, the Dallas Times Herald, the Denver Post, the Hartford (Conn.) Courant and other newspapers, hopes to complete the Sun acquisition within three or four months.