Posted on 07/02/2006 11:52:18 AM PDT by george76
Dissident group says will continue efforts for sale or breakup of company...
Tribune Co. shares gained ground Tuesday, rising as the media company that's been working to revamp operations amid shareholder unrest announced the results of a Dutch tender auction.
Analysts said any gains could prove short lived, however.
Chicago-based Tribune Co said that about 45 million, or 15%, of its common shares were tendered and that it expects to buy the shares at a price of $32.50 each.
The number of shares tendered came in 8 million short of the maximum that the company had initially authorized in the buyback.
The Chandler Trusts said it will continue its "efforts to bring about positive change for the benefit of all Tribune stockholders."
"We, like many other non-tendering stockholders, believe there is greater value to be realized through prompt and meaningful strategic action," a spokesman for the Trusts said in a statement on Tuesday.
"The noise made by the Chandler Trusts demanding a sale or breakup of the company seems to have provided investors with the belief that the shares will ultimately be worth more than where they are currently trading, despite continued lackluster fundamental prospects," Bear Stearns analyst Alexia Quadrani said.
In a note to clients, she wrote that she expects a drop in the shares "once investors refocus on the company's challenging outlook in both its newspaper and broadcast divisions.
The trust holds more than 14% of Tribune Co.'s outstanding shares and has said it would not tender any stock in the auction.
The buyback figure is preliminary...
(Excerpt) Read more at marketwatch.com ...
Given how economies of scale originally motivated fishwrap mergers breaking up fishwrap conglomerates can only cause costs to skyrocket. As fishwrap's power and influence dwindle due to declining circulation fishwrap ownership can now only confer some arguable prestige. It seems like an excellent idea to me for Burkle to enhance his own prestige by acquiring the LA Times.
Tribune Fails to Complete Buyback Amid Investor Fight http://www.bloomberg.com/apps/news?pid=20601087&sid=aXmHI2Yv2ujo&refer=home
From the article:
June 27 (Bloomberg) -- Tribune Co., the second-largest U.S. newspaper publisher, failed to meet its goal of buying back about 25 percent of outstanding shares amid a fight with its second-biggest shareholder.
Shareholders agreed to sell about 45 million shares at $32.50, Chicago-based Tribune said today in a statement distributed by PR Newswire. That's 85 percent of the 53 million shares the company planned to buy through a so-called Dutch auction process.
Thank you.
I don't have any dog whatever in this fight, but, that said, mgmt looks to me to be up the proverbial creek in a leaky canoe.
"Chandlers Seek Potential Allies In Family's Fight Over Tribune"
As the first phase of Tribune Co.'s contentious $2 billion stock buyback ended with weaker-than-expected shareholder participation, the Chandler Trusts were planning their next move in their battle with the newspaper and broadcast company.
The Chandler family, which owns its Tribune shares through the trusts and will become the company's largest shareholder in the wake of the buyback, is preparing to meet with private-equity and other investors, according to people familiar with the family's plans.
The Chandlers are trying to drum up support for a breakup or sale of all or part of Tribune, these people said.
Among those with whom the Chandlers plan to meet are people who have expressed interest in buying individual Tribune newspapers, such as the Los Angeles Times.
Among those who have indicated interest in the Times are entertainment mogul David Geffen, supermarket investor Ronald Burkle and philanthropist Eli Broad.
http://www.mediainfocenter.org/story.asp?story_id=94896630
Yes!!! Excellent!!! Sell it to the Clinton-Burkle-Yucaipa mob.
The Clinton-Burkle-Yucaipa mob will make big commissions when they sell the highly inflated TRB shares to their union pension funds.
We will know that is the top on the stock price.
"Among those who have indicated interest in the Times are entertainment mogul David Geffen, supermarket investor Ronald Burkle and philanthropist Eli Broad."
That would be the kiss of death in America. Who knows maybe they plan to sell the LA Slimes in Paris and other Euro Trash Hell Holes.
When the Chandlers ran the operation, the LA Times was a fine newspaper. Hard to believe but true.
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