Renegotiation of the deal to buy Tribune looks increasingly prude...
Renegotiation of the deal to buy Tribune looks increasingly prudent, Gimme Credit analyst Dave Novosel wrote. Investor Samuel Zell agreed to buy Tribune in an $8.2 billion deal that will nominally put the company in the hands of its…
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employees through an employee stock ownership plan. “The LBO by Sam Zell is still on at this point, but we think the deal may be restructured,” Novosel said. “Poor operating performance and an unsettled credit market will give investors pause on a new bond offering.” FCC Chairman Kevin Martin circulated Wednesday a proposal that would grant Tribune the newspaper-broadcast cross ownership waivers it needs to complete financing for the deal (CD Nov 29 p3). That proposal would “enable Tribune’s going private transaction to close by the end of the year,” CEO Dennis FitzSimons said late Wednesday. If the transaction fails to move forward in time, the company could face expensive tax effects, according to industry sources and news reports.