Cablevision 'to bid for Newsday'

New York television operator Cablevision looks set to enter the race for Long Island-based Newsday with an offer to top bids by Rupert Murdoch and rival publisher Mort Zuckerman.

Murdoch's News Corp and Zuckerman's New York Daily News each have some $580 million (£292.4 million) on the table.

Zuckerman matched the price and terms of Murdoch's offer, betting it would be more attractive as it would not attract as much regulatory scrutiny.

But Cablevision is prepared to bid $650 million for the paper, owned by Tribune Co and its bid could come within 48 hours, the Wall Street Journal says.

Tribune, owner of the Los Angeles Times and Chicago Tribune, is selling Newsday to reduce the $13 billion of bonds and loans taken on in the buyout led by billionaire Sam Zell.

Murdoch wants to combine Newsday with his New York Post to slash costs. Its pre-tax earnings are estimated at $80 million.