Newspaper publisher The McClatchy Co. said on Tuesday that it will sell its flagship newspaper Star Tribune to a private equity firm for $530 million, a sharp drop from the $1.2 billion it paid to acquire the newspaper just eight years ago. Sacramento-based McClatchy said it decided to sell the newspaper to Avista Capital Partners through a private bidding process "after a strategic reevaluation of its portfolio of holdings" following McClatchy's purchase of Knight Ridder for $4.5 billion earlier this year.McClatchy faces a large tax bill from selling off 12 other newspapers earlier this year as part of its purchase of Knight Ridder. It said the tax benefit of selling the Star Tribune at a loss is worth $160 million, raising the total value of the deal to $690 million. McClatchy said it would use the money to pay down its Knight Ridder debt.