Tribune Update

By Mark Lacter

Tribune update: At last some specifics about Sam Zell's proposal to take over the Chicago-based parent of ther LAT. Barron's reported over the weekend that the offer is valued at about $13 billion, with Zell putting in as much as $300 million. The plan, which Tribune directors could consider at a meeting on Saturday, involves Zell being in partnership with an employee stock ownership plan. Zell, in effect, would hand over control of Tribune to the ESOP. In return, tax deductions generated by the ESOP will sweeten the share price that Tribune could pay existing shareholders. Barron's reported that Zell wants to become chairman of the surviving entity.