Tribune Bid Deadline Brings Chandler, Burkle-Broad Bids
January 18, 2007 at 5:46 AM (PT)
TRIBUNE CO.'s deadline for bidding on the company passed on WEDNESDAY with bids from the CHANDLER family and from billionaires RON BURKLE and ELI BROAD.
BURKLE and BROAD are proposing a leveraged recapitalization of the company in which the investors would put $500 million into TRIBUNE -- paying shareholders a $27/share dividend plus $7/share equity -- in exchange for about 30% ownership and would raise $11 billion in debt to fund the deal while leaving present management in place to run the operation.
The CHANDLER family is partnering with private equity firms to offer to buy the company's newspaper division and spin off the TV stations. The CHANDLER bid is a $31.70/share offer, with $19.30/share in cash and the rest in stock in the spinoff of TRIBUNE BROADCASTING. TRIBUNE stock closed WEDNESDAY at $30.34/share. Another bid reportedly came from a private equity firm that is looking to buy the TV stations and not the newspapers.
TRIBUNE's board committee reviewing the bids is expected to announce the company's plans in the first quarter. The company owns one radio property, Talk WGN-A/CHICAGO.