Posted on 01/17/2007 7:58:05 PM PST by LdSentinal
AP) LOS ANGELES Tribune Co. directors prepared to deliberate over the struggling media company's next step Wednesday as a much-anticipated bidding period for its assets came to an anticlimactic close.
Tribune - owner of the Los Angeles Times - remained silent about the results of the bidding for the company or its two primary units, newspapers and broadcast after a late-afternoon deadline for submitting proposals had passed.
No announcement was made and none was expected, but the widespread view of those watching the review process closely was that no premium bid had been made.
"We're not going to say anything regarding the details of the process or what the submissions have been," company spokesman Gary Weitman said.
That leaves the Chicago-based company's outlook as murky as it was last June when the Chandler family, then Tribune's second-largest shareholder, forced it to ultimately put itself up for sale by accusing it of a series of strategic failures and calling for its breakup.
Despite initial hopes the so-called auction might draw a bid from a deep-pocketed private equity firm or another media giant, preliminary bids were weak and extending the deadline by two months did not appear to have lured any strong offers by the final few hours.
The Chandlers, whose stake has risen to 20 percent, had been thought to be the likeliest party to make a last-minute offer for the company. But the Los Angeles Times, which the family formerly owned, reported Wednesday that they were leaning against bidding.
A spokeswoman for the Chandler Trusts declined to comment. Other prospective bidders also remained mum: Southern California billionaires Eli Broad and Ron Burkle and the Chicago investment firm Madison Dearborn Partners, which had reportedly tried to bring together various stakeholders to make an offer.
Tribune's stated timetable for a decision on its direction remains sometime between now and the end of March.
Weitman said the independent board committee that was appointed in September to come up with a course of action to improve a sagging stock price will evaluate submitted proposals and make a recommendation to the full board. The board then expects to announce a decision sometime in the first quarter, he said.
Analysts continued to maintain that any offer that did come in would fail to be significantly above the current stock price, leaving the entire company's sale unlikely. That could prompt Tribune to either undertake more stock buybacks or try to sell individual assets, although that option remains fraught with tax-related obstacles.
The company's holdings include the Times, Chicago Tribune and nine other daily newspapers; 23 television stations; Internet ventures; the Chicago Cubs baseball team, and sizable stakes in the Food Network and the CareerBuilder online classified advertising venture.
Tribune shares slipped to a four-month low before the deadline, reflecting Wall Street's confidence that no deal is near. The stock declined 18 cents to $30.34 on the New York Stock Exchange after dropping as low as $30.15, the lowest since last Sept. 12.
"newspapers are generally overvalued and likely will plunge if Tribune fails to attract any bids."
Hey, I will go $2... not a share.. $2.
You just want the Linotype to melt down for bullets, doncha?
Couldn't happen to a more deserving bunch of scumbags.
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