Tribune Announces Result Of Stock Buyback
June 1, 2007 at 3:43 PM (PT)
TRIBUNE CO.'s tender offer has wrapped up with the repurchase of 126 million shares at $34/share, representing about 90% of outstanding shares. The purchase was prorated at 57.7% because of the number of shares tendered (218,132,108). Payment will be made no later than JUNE 5.
"We are pleased with the results of the tender offer and its successful conclusion," said Pres./CEO DENNIS FITZSIMONS. "The first stage of our transaction that will result in TRIBUNE CO. going private is now complete. We look forward to obtaining the necessary approvals for the next stage of the transaction and to completing the transition to a private company."
And the company has announced that an offer of settlement is pending in its appeal of a 2005 Tax Court decision that rejected a tax free reorganization of MATTHEW BENDER, a publishing company it acquired as part of its purchase of TIMES MIRROR. The settlement would give TRIBUNE about $350 million in tax refunds. The company says that counsel for both the company and the IRS are "optimistic that the case can be resolved without the intervention of the Court" and that the court has deferred oral arguments for 90 days to allow for governmental review and approval of the offer.
TRIBUNE is in the process of being taken private in a sale to SAM ZELL and an employee stock ownership plan. It owns Talk WGN-A/CHICAGO.