Thursday, June 15, 2006

CSFB raises rating on Tribune

By David B. Wilkerson, MarketWatch
Last Update: 11:23 AM ET Jun 15, 2006

CHICAGO (MarketWatch) -- Credit Suisse First Boston lifted its rating on Tribune Co. to outperform from neutral Thursday, saying that the company's No. 2 shareholder has set the stage for a restructuring or asset sales that could mean a "significant" boost to its share price.

Analyst Debra Schwartz told clients that a regulatory filing by the Chandler trusts that called for divestiture of Tribune's (TRB) broadcasting division or other alternatives including a possible sale of the company will probably have some impact on its strategic direction.

"While there are many variables and complicating factors in forcing a breakup of the company, we believe the Chandlers' inside control and board representation makes it more likely than not something materializes," Schwartz said in a research note.

The trusts said in a Tuesday filing that Tribune should separate its newspaper business from its television broadcasting business and begin to explore other strategic alternatives, which could include tax-free spin-offs of its newspaper assets or the sale of the company as a whole.

Tribune shares were up 0.8% at $32.21 Thursday morning.

1 comment:

Anonymous said...

An Moody's cut them to 'Junk' status.