Buyer Cancels Deal to Acquire Eureka Paper

Media General Inc. said it called off a $42-million deal to buy the Eureka Times-Standard newspaper from Garden State Newspapers Inc. “Our agreement in principle was based upon our understanding of certain projections and assumptions at that time,” Media General Chairman Stewart Bryan said. “Upon detailed inspection, we found the original price to be unrealistic and declined to pursue the purchase on its original terms.” Denver-based Garden State Newspapers, a privately held company, could not be reached for comment. Media General, based in Richmond, Va., has interests in newspapers, broadcast and cable television, recycled newsprint production and diversified information services mainly in the Southeast. Its stock rose 12.5 cents to close at $28.50 on the American Stock Exchange.