Marty Peretz, Larry Grafstein in Discussions to Buy The New Republic

Marty Peretz has teamed up with former investment banker Larry Grafstein and a small group of other investors in attempt to buy The New Republic, said a person familiar with the discussions.

Mr. Peretz, the former owner of TNR and its current editor in chief, sold his stake in 2007 to CanWest, the troubled Canadian communications company that has now said it is looking to sell non-core assets. The New Republic is the only major American asset that the company owns.  

Mr. Peretz, Mr. Grafstein and a small team of roughly a half a dozen investors are in negotiatoins with CanWest and are hoping to strike a deal that could be completed as early as this afternoon, said the person familiar with the discussions. There is no guarantee a deal will be completed.

Update, 5:05 PM EST: No deal by the end of the business day. More as it breaks.