Feds Subpoena Tribune Over Stock Plan
April 13, 2009 at 5:23 AM (PT)
TRIBUNE CO. has been subpoenaed by the Department of Labor over SAM ZELL's use of an employee stock ownership plan as part of his takeover of the now-bankrupt media company. The ESOP was made the majority owner of the company in the deal, thus allowing the company a tax break.
TRIBUNE disclosed the investigation in a bankruptcy court filing THURSDAY and said in a statement, "We view this as a routine inquiry and we are responding by producing the requested documents concerning the ESOP."
The company owns one radio station -- Talk WGN-A/CHICAGO.