* OpenGate, Zuckerman drop BusinessWeek bid - sources
* Bloomberg, ZelnickMedia remain - sources
* McGraw-Hill shares close up 2.8 percent
(Adds Zuckerman dropping bid, background, closing share
By Anupreeta Das
NEW YORK, Oct 6 Private equity firm OpenGate
Capital and New York Daily News owner Mort Zuckerman have
dropped out of the bidding for McGraw-Hill Cos Inc's MHP.N
BusinessWeek magazine, people familiar with the matter said,
leaving Bloomberg LP and ZelnickMedia to vie for the
OpenGate and Zuckerman, who is also co-founder of real
estate investment trust Boston Properties Inc (BXP.N), could
have lost interest because McGraw-Hill executives favor a sale
to Bloomberg, the financial news and data provider owned by New
York City Mayor Michael Bloomberg, the sources said.
McGraw-Hill considers Bloomberg the best buyer for
BusinessWeek because it could capitalize on the marriage of two
brand names well-known in financial circles, another source
told Reuters on Sept. 29. But the company has remained open to
superior offers, the source added at the time.
OpenGate had put in a bid for the 80-year-old magazine last
month, along with Bloomberg and ZelnickMedia.
Zuckerman, whose media holdings include U.S. News & World
Report, came in with a last-minute bid, but dropped out a "few
days ago," one of the sources told Reuters.
Zuckerman previously owned The Atlantic Monthly and Fast
Company magazines, but his recent attempts to buy media
properties -- such as a 2008 bid for the Newsday newspaper --
have been less successful.
OpenGate Capital, based in Los Angeles and Paris, is an
opportunistic investor with assets around the world. Its media
assets include TVGuide magazine.
McGraw-Hill said in July it was considering "strategic
options" for BusinessWeek as ad sales worsened, indicating it
might sell the magazine. The company hired investment bank
Evercore Partners Inc (EVR.N) to run the sale.
A McGraw-Hill spokesman, Zelnick and OpenGate all declined
to comment. A spokesman for Zuckerman was unavailable for
Shares of McGraw-Hill closed up 2.8 percent at $25.98 on
the New York Stock Exchange.
(Reporting by Anupreeta Das; Additional reporting by Robert
MacMillan; Editing by Gerald E. McCormick, Matthew Lewis and