Honolulu Advertiser employees were stunned and shaken by news that the Star-Bulletin's owner is buying their paper.

“;I lost a piece of my family,”; said Halili Balisbisana, a retail advertiser who has been with the paper for 20 years. “;There's a lot of people that's worried about their jobs.”;

Star-Bulletin owner David Black told his employees yesterday that the company was buying the Advertiser and putting the Star-Bulletin up for sale. If the sale does not go through, the newspapers would be consolidated.

Mark Platte, editor of the Advertiser, said he heard rumors about the sale but did not know for certain until 3 p.m., one hour before Evan Ray, Gannett's senior vice president of finance, announced the news to the entire staff.

“;When a newspaper owner buys another one, I think we're all surprised by it,”; Platte said. “;I think we have to continue to do the best job at the Advertiser. Obviously David likes what he sees at the Advertiser because of its strong position in the marketplace.”;

He said Black will want the strongest paper possible, and a combined paper can be stronger with more people.

But he said the quality of the paper will depend on what Black wants to do with it, noting that he has cut staff and resources in other markets.

He said he is worried about his employees, who are wondering what will happen next.

“;I hope Mr. Black will take a hard look at the talent that's over here,”; he said.

Darrell Ishida, 48, a graphic designer at the Advertiser, was surprised by the news.

“;I don't think anyone really thought that we were going to be the paper that's being bought out,”; he said.

“;My impression is people here at the Advertiser are pretty much screwed,”; said Ishida, who left the Star-Bulletin about five years ago.

He said he believed a company buying out another company will keep its original employees.

There was some confusion for Advertiser employees as to what the Star-Bulletin's owners intend by a combined operation.

“;That's such a broad term that we really don't know what he means,”; said Wayne Cahill, administrative officer of the Hawaii Newspaper Guild.

He said Ray told Advertiser employees that the Star-Bulletin was going to buy the Advertiser in an asset sale.

“;Usually asset sales are done so they can tear up the contract,”; Cahill said. The guild represents about 230 union employees at the Advertiser.

But the guild would still represent those employees in the new organization, and the company would have to bargain over new conditions, he said.

Suzanne Roig, a part-time reporter at the Advertiser and president of the Hawaii Newspaper Guild, echoed concerns about the employees' future. “;Six to eight weeks from now, we don't know if we'll have a job,”; she said.

Black, she said, will be the sixth owner of the Advertiser in its 153-year history.

Richard Miller, professor emeritus at the University of Hawaii law school, said it would be tragic for Honolulu to become a one-newspaper town.

Miller fought to save the Star-Bulletin when its owner tried to shut it down in 1999. Miller was part of the group Save Our Star-Bulletin, which waged a battle against the closure plan.

Without a competitor, a newspaper reduces the news and increases the cost of advertising to make a profit, unless the owner is dedicated to running a quality newspaper, he said.

“;It's sad,”; he said. “;It may be that his (Black's) intention is to have a great newspaper, but he has to convince us that a single newspaper is going to be a really good one. I think the economics work sort of the other way.”;

Miller said newspapers are essential to democracy. “;Under our Constitution you need newspapers, you need good news sources.”;

QUESTION & ANSWER

QUESTION: Why is Oahu Publications buying The Honolulu Advertiser?

ANSWER: The Star-Bulletin newspaper has lost money for the nine years that it has been owned by Oahu Publications Inc. Shareholders of Oahu Publications decided a year ago that we were unwilling to continue to subsidize the paper forever. Since we wanted to maintain our investment in Hawaii, we decided to approach Gannett to try to purchase The Honolulu Advertiser and restructure the business.

Q: Why is the Star-Bulletin for sale?

A: Because Oahu Publications owns the Star-Bulletin and because the Star-Bulletin and Honolulu Advertiser are daily newspaper competitors, Oahu Publications has agreed with the Department of Justice to a sales process to solicit interest from parties who would like to purchase and operate the Star-Bulletin as a competitive newspaper. The Hawaii Attorney General has been informed of the acquisition agreement and the Star-Bulletin sales process.

Q: Will Oahu Publications offer to sell all its businesses?

A: No, only the Star-Bulletin newspaper will be offered for sale. We will continue to operate MidWeek, the military papers and the commercial printing business.

Q: What if the Star-Bulletin does not sell?

A: If the Star-Bulletin is not sold, the operations of the Star-Bulletin and Honolulu Advertiser will be consolidated by Oahu Publications to create a single daily newspaper. We want to produce a strong paper to continue serving Honolulu, Oahu and all of Hawaii. You have our commitment we will do that.

Q: What happens if the Star-Bulletin sells?

A: If the Star-Bulletin newspaper business is acquired by a third party, the Star-Bulletin will be transferred by Oahu Publications to the new owner, and Oahu Publications will then operate the Honolulu Advertiser, as well as MidWeek and the other businesses. We expect any new buyer would need to hire most of the existing Star-Bulletin employees not required by Oahu Publications to continue to publish a quality paper.

Q: What happens between now and the close of the transaction?

A: Both dailies will be published independently by the current owners while Oahu Publications attempts to sell the Star-Bulletin and completes the steps required to finalize regulatory approvals.

Q: What happens at the close of the transaction?

A: All Honolulu Advertiser employees will be offered employment by an arm's-length management services company working on contract for Oahu Publications. The Advertiser and Star-Bulletin will continue to be published independently for a few months.

Q: How long will you operate both papers?

A: That will be determined by the length of the sales process for the Star-Bulletin, which could carry on for some time subsequent to the close, and by technical hurdles: setting up circulation systems, merging computer systems and so on.

Q: Would we move from Waterfront Plaza?

A: Oahu Publications has a lease at Waterfront Plaza until 2013. The Advertiser will operate out of 605 Kapiolani Blvd. until its status has been determined. If the Star-Bulletin sells and the buyer takes over the lease at Waterfront Plaza, we will determine space needs and react accordingly.

Q: Will the Kaneohe plant continue to operate?

A: If the Star-Bulletin sells, the buyer will need a press and will likely take over the Kaneohe plant and mailroom. The Urbanite press line would remain in the plant, and we would move the community press line elsewhere to accommodate our commercial printing business. Any new consolidated daily newspaper eventually will be printed at the Kapolei plant.

Q: When will we know if the Star-Bulletin will sell?

A: The Department of Justice will notify us by early April if there are potential buyers. If there is a qualified buyer, we will enter a sales process, which will be determined in part by the buyer.

Q: Who will run the combined paper?

A: After consolidation, Dennis Francis will be president of Oahu Publications and publisher of the combined paper.

Q: If the papers consolidate, what will be the impact on the staff?

A: Once Oahu Publications is able to put together a consolidation plan after accessing operational and personnel information from Gannett, Oahu Publications will be in a better position to determine its future staffing needs.

Unfortunately there will be layoffs. Employees who are laid off from the management services company and not immediately hired by Oahu Publications will receive severance pay as set out in the various collective bargaining agreements and as is customary.

We want to produce a good new paper, and we will need a full staff to do that.