Tribune sale in trouble? (part whatever)

[Lefty]

LOS ANGELES (MarketWatch) -- Shares of Tribune Co. (TRB: News, Quote) dropped another 3.5% in midday trading Tuesday as concerns mounted that a dismal ad revenue situation might thwart the deal to take the newspaper giant private. Shares fell 90 cents to $24.87 in recent action, now putting the company's shares at nearly $10 a share below the planned sale price of Tribune. Real estate mogul Sam Zell is supposed to close a deal to take Tribune private for $8.2 billion, or $34 a share.

[UMFan83]

Sweet that should be more incentive for the Cubs to incur more debt and resign Zambrano. I bet if anything the Cubs cut payroll in the offseason.

[jiml60]

Why would the potential new owners cut payroll just because the Tribune stock is dropping?

[Lefty]

Why would the potential new owners cut payroll just because the Tribune stock is dropping?

 

I don't know. The point of the thread is that there might not be new owners.

[SouthSideRyan]

Sweet that should be more incentive for the Cubs to incur more debt and resign Zambrano. I bet if anything the Cubs cut payroll in the offseason.

 

Is it even possible to cut payroll without trading off players?

[CubColtPacer]

Sweet that should be more incentive for the Cubs to incur more debt and resign Zambrano. I bet if anything the Cubs cut payroll in the offseason.

 

Is it even possible to cut payroll without trading off players?

 

From right now? The only big loss would be letting Zambrano go (12.5 million). At the start of the season though, remember that the team had Izturis at over 4 million, Barrett at 4.5 million, Rusch at 3 million, Wade Miller at 1.5 million, Wood at 1.5 million, Floyd at 3 million. Even with the raises to some of the other players, the team could definitely cut payroll without making trades.

[CubFanPhilly]

The sale of the Cubs is likely whether or not the Tribune sale happens. In fact it probably becomes more urgent if the Banks pull out and the deal tanks.

[chuckywang]

Zell could back out of the deal by paying the Tribune company $25 million.

[Lefty]

The sale of the Cubs is likely whether or not the Tribune sale happens. In fact it probably becomes more urgent if the Banks pull out and the deal tanks.

 

The problem for the Trib has always been the huge Capital Gain hit it would take on a Cub sale. Now that the stock is below where it was before any talk of a sale, I wonder if they could "reissue" the shares they bought at $34 for $23-$25, book the difference as a loss, and then sell the Cubs in what would amount to a tax-free transaction. Would the new stock be "substantially similar?" I know there are accountants and lawyers out there who can answer this.

[Soul]

Couldn't Zell simply re-negotiate the share price of the buyout then? Or is it a given that the Trib wouldn't go for it?

[Lefty]

Couldn't Zell simply re-negotiate the share price of the buyout then? Or is it a given that the Trib wouldn't go for it?

 

That's what the market is saying. But the company has already bought their chunk of stock back at $34. Will they let Zell take that much money off the table? I think Hendry is right at home with this company.