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To: Riley who wrote (7465)	1/28/1999 11:29:00 PM
From: Jay Lyons	Respond to of 43080

Report:Golden Books, St. Martin's Press in talks Adult trade book unit on block with unnamed party By David B. Wilkerson, CBS MarketWatch Last Update: 8:16 PM ET Jan 28, 1999 Media Report NEW YORK (CBS.MW) -- Shares of Golden Books Family Entertainment jumped 28 percent Thursday, fueled by a published report that St. Martin's Press is about to buy the company's adult trade book unit. The stock (GBFE) rose 13/32 to 1 7/8. The New York Post reported that privately-held St. Martin's is close to cementing a deal. Golden Books Chief Administrative Officer Philip Galanes told CBS.MarketWatch.com the company is "in negotiations with a party to sell the adult trade group, but we're not talking to anybody about who that is, and we're not disclosing any terms." Galanes added that the talks are at a very early stage. Golden Books is primarily known as the No.1 publisher of children's books. Another catalyst to Thursday's move was ongoing speculation that Walt Disney Co. (DIS) is about to buy all of Golden Books. The company's stock jumped 162 percent earlier this month on that possibility. But Galanes says it simply hasn't been discussed. He does acknowledge that Golden Books has been talking with Disney about "expanding" the current licensing agreement between the two companies. Under part of that agreement, Golden Books publishes certain titles related to Disney characters, such as Winnie The Pooh. "And we were talking about some other ways that we could grow the business that we do with them. But we were never talking about an acquisition," Galanes said. Golden Books, which has seen its stock tumble from the 10-11 range in the past year, said in November that it's streamlining to focus more intently on its core children's book business. The company also makes family entertainment products designed for other media. Golden Books also said last year that it's retained investment firm Allen & Co. as its adviser to help it explore "strategic alternatives" and is taking a number of cost-cutting measures.