Competing bids for TRB

[goonys evil twin]

NEW YORK, Jan 18 (Reuters) - Tribune Co.'s largest

shareholder has submitted a bid to buy the company and spin off

some of its broadcast and entertainment operations, in an offer

that values the media company at $7.6 billion.

The Chandlers proposed to take Tribune private at $31.70 a

share, which tacks a 4.5 percent premium onto its New York

Stock Exchange closing price of $30.34 on Wednesday. Tribune

disclosed the bid in a filing it made with the U.S. Securities

and Exchange Commission late on Wednesday.

The bid compared with a $34-a-share offer from billionaire

investors Ronald Burkle and Eli Broad on Wednesday, according

to a source familiar with the situation.

"The spin-off of Tribune Broadcasting as a separate company

will unlock substantial value for Tribune stockholders other

than the Chandler Trusts and is an important component of our

overall proposal," said a letter signed by William Stinehart

Jr., a co-trustee of the Chandler Trusts and a member of

Tribune's board.

The Chandlers proposal would give shareholders $19.30 in

cash and all the outstanding shares of a new company that would

contain Tribune's broadcasting business.

Burkle and Broad's offer is made up of a $27 dividend and

equity valued at $7 a share. They proposed to put $500 million

of their cash into Tribune, and own about 30 percent of the

newspaper and broadcasting group, said the source.

Shareholders would retain a stake of about 70 percent in

Tribune, which would continue to be publicly traded under the

billionaires' offer.

Edited January 18, 2007 by goony's evil twin

[goonys evil twin]

NEW YORK, Jan 18 (Reuters) - Billionaire investors Ronald

Burkle and Eli Broad on Wednesday proposed a deal which would see

them inject $500 million of their own cash into Tribune Co.

and own about 30 percent of the newspaper and

broadcasting group, a source familiar with the situation said.

Under the leveraged recapitalization proposal, the pair would

raise $11 billion in debt to fund the deal, the source said,

adding that they have financing committed.

The proposal offers Tribune shareholders $34 a share -- made

up of a $27 dividend and equity valued at $7 a share.

Shareholders would retain a stake of about 70 percent in the

company, which would continue to be publicly traded.

Tribune's shares closed down 18 cents at $30.34 on the New

York Stock Exchange on Wednesday.

A drawn-out deadline for takeover bids for Tribune passed on

Wednesday amid increasing concern that Tribune would not attract

bids high enough to accept.

Under pressure from the Chandler family, the largest

shareholder in a company valued by the market at $7.5 billion,

Tribune said in September it would explore its options, which

could include a sale.

Tribune, owner of the Los Angeles Times and Chicago Tribune

newspapers and the Chicago Cubs baseball team, had hoped to make

a recommendation to its board by the end of 2006. But the auction

was delayed after a disappointing first round of bids and a new

deadline was set for Jan. 17, according to sources.

The Chandler family was also looking to mount an offer of its

own, according to reports in the New York Times and the Wall

Street Journal.

The WSJ reported that under the Chandler's proposal, the

Chandlers and private-equity partners would buy Tribune's

newspapers, which include the Los Angeles Times and Chicago

Tribune, while Tribune would spin off its TV stations.

The company also received at least one proposal from a

private equity firm interested in the company's TV stations, the

WSJ reported, citing a person familiar with the matter.

Acquiring Tribune's newspapers would mark an unexpected

return to the publishing business for the Chandlers. The family

owned and ran the Los Angeles Times for more than a century

before selling it, along with Times Mirror Co., to Tribune in

2000 for $8.3 billion.

The sale included other Times Mirror papers, including The

Baltimore Sun in Maryland and Newsday, published on Long Island

in New York.

Under Broad and Burkle's proposal, made to Tribune by letter

submitted on Wednesday, existing management would run the company

but Burkle and Broad may take board seats. As there would be no

change of control, such a deal could be completed quicker than a

pure takeover.

Both Burkle and Broad are billionaires based in Los Angeles.

Grocery magnate Burkle owns private equity firm Yucaipa, and has

invested in companies including Wild Oats Markets Inc. .

Broad founded home builder KB Home and financial

services firm SunAmerica Inc., now part of American International

Group .

 

PRIVATE EQUITY INTEREST WANED

Key private equity players who initially showed interest in

bidding for the whole of Tribune were said by sources to have

been unlikely to have submitted offers for the whole company.

Madison Dearborn Partners, Providence Equity Partners and

Apollo Management, a private equity consortium that had been

interested in the group, was thought unlikely to have submitted a

bid by the deadline, a source familiar with the situation said on

Wednesday.

According to separate sources in December, other potential

bidders, Thomas H. Lee Partners [THL.UL] and Texas Pacific Group

[TPG.UL], dropped out in part because they had already announced

big media deals in 2006 and were worried about a U.S. law

restricting media asset ownership in a given market.

Texas Pacific was thought unlikely to have put a bid in, a

source familiar with the situation said on Wednesday. Thomas H.

Lee was also thought unlikely to have put a bid in, a separate

source familiar with the situation said on Wednesday.

A source told Reuters in October that Carlyle Group [CYL.UL]

had looked at Tribune, but it was unclear whether it had or would

bid. Carlyle's intent was unclear on Wednesday.

Representatives for Carlyle, Texas Pacific, Yucaipa, Eli

Broad and Ron Burkle declined comment. Apollo, Madison Dearborne,

Providence and Tribune, were not available for comment.

[Guest]

There's no baseball in those posts!

[goonys evil twin]

There's no baseball in those posts!

 

I thought about transactions, but thought most past ownership talk was in discussions. I actually spent 2-3 minutes thinking about where to post this, as opposed to most times when I don't spend anytime thinking about my posts.

[BigbadB]

I actually spent 2-3 minutes thinking about where to post this, as opposed to most times when I don't spend anytime thinking about my posts.

 

Hello Captain Obvious! :D

 

 

 

 

Nothing wrong with posting it here.

[Post Count Padder]

I actually spent 2-3 minutes thinking about where to post this, as opposed to most times when I don't spend anytime thinking about my posts.

 

Hello Captain Obvious! :D

 

 

 

 

Nothing wrong with posting it here.

I'm fairly certain that previous posts about the sale of the Tribune Co. have been posted in Baseball Discussions.