Denver's MediaNews Group agreed to buy the San Jose Mercury News and the Contra Costa Times -- the Bay Area's second and third largest newspapers -- from McClatchy Co., the companies said today. New York's Hearst Corp., publisher of The Chronicle and SFGate, is buying the Monterey County Herald and the St. Paul Pioneer Press of Minnesota from McClatchy and will transfer ownership of those papers to MediaNews in exchange for a stake in MediaNews' operations outside the Bay Area. The deal for all four papers was valued at $1 billion -- 11.5 times the paper's earnings before interest, taxes,...