Wednesday, January 17, 2007

Three Bids for Tribune Company

According to the Wall Street Journal, three groups have submitted bids for the Tribune Company by Wednesday night's deadline, they include the Chandler Family and billionaires Ron Burkle and Eli Broad.

If your a subscriber to the Wall Street Journal you can read the complete story online, if not, the story will be covered in tomorrow's local media.

According to The Journal:

The Chandlers would buy Tribune newspapers, including the Los Angeles Times, which they formerly owned, and Tribune would sell its television stations. The Chandlers would hold 51% of the newspapers.

Burkle and Broad proposed a leveraged recapitalization under which they would borrow $10.5 billion, contribute $500 million in cash and take 34% equity control of the company. The proposal would avoid tax issues arising from the sale of individual assets. Burkle and Broad would be co-chairmen.

An unidentified private equity firm expressed interest in the company's television station.

Tribune spokesman Gary Weitman said a special committee of Tribune's board intends to examine the bids and make a recommendation to the full board. The board is then expected to announce its decision at some point during the year's first quarter.

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