By James Rainey, Times Staff Writer
3:22 PM PST, February 23, 2007
Excerpt
With no clear premium offered by a handful of bidders and its auction already extended once, Tribune management is expected Saturday to ask the company's directors to review a reorganization and recapitalization. The plan would split the company into separate broadcast and newspaper divisions, pay a dividend of up to $20 per share and sell two small Connecticut papers, according to two people familiar with the proposal.
[snip]
Several Tribune managers said they are anxious about the company's "self-help" proposal because, like Broad and Burkle's plan, it would require heavy borrowing to pay the large dividend. They worried the company would face new pressure from its lenders to cut costs and reduce staff. That situation could become even more severe if the company cannot find a way to take itself private and out of the reach of public shareholders.
One Tribune manager, who asked to remain anonymous so as not to anger his bosses, said: "It sounds like the worst of both worlds."
Continue reading story at Los Angeles Times
No comments:
Post a Comment
For now, we're opening this blog to Anonymous comments. This will continue as long as civility rules. Disagree as you may, just keep it clean and stay on topic. No profanity, and no name calling. We reserve the right to moderate such comments, though the person who made it may come back and reword their message in a more civil way.