Burkle, Broad Complain Tribune's Favoring Zell
March 26, 2007 at 5:48 AM (PT)
Billionaires RON BURKLE and ELI BROAD have complained to the board of TRIBUNE CO. that they should have gotten the same information given by the company to rival bidder SAM ZELL, who has emerged as the leading candidate to take over TRIBUNE, reports the LOS ANGELES TIMES.
Local LOS ANGELES businessmen BURKLE, the head of YUCAIPA CO., and BROAD, the real estate mogul, complain that their bid, which came in before ZELL's, has not been given serious consideration and that ZELL got an advantage by obtaining information that led to his $33/share bid that includes an employee stock ownership plan. BURKLE and BROAD are reportedly putting $500 million of their own investment in the bid, as opposed to ZELL's $300 million equity investment.
TRIBUNE has a MARCH 31 deadline to complete reviewing the bids, but may grant itself an extension. It owns Talk WGN-A/CHICAGO.