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July 25, 2008 12:10:52 AM CDT

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Shareholders OK Tribune Takeover

Posted Aug 21, 07 1:41 PM CDT in US,  Business 

(Newser) – The Tribune Co.’s shareholders approved Sam Zell's $8.2 billion takeover today, nudging the publisher one step closer to private ownership. But some analysts remain skeptical that the deal will go through as planned—the company’s declining profitability since the April announcement has triggered speculation that the 26% premium Zell offered is outdated.

One analyst guessed that if the deal proceeds, the company would be unable to pay the interest on its debt, and if its collapses, Tribune’s stock could trade as low as $4. Those fears didn’t deter one shareholder from labeling Zell’s bid a “cheap price.” In midday trading, Tribune’s share price rose 3.8% to $28.04.

Source Bloomberg

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    Aug 20, 07 3:21 PM CDT
    Trib Deal Could Come Undone The Tribune Company’s shareholders are meeting tomorrow to approve Sam Zell’s $8.2 billion takeover, but whispers persist on Wall Street that the deal will crumble. A disappointing stock price, concerns about the fading newspaper business, and a sagging credit market have convinced some analysts that Zell’s offer of $34 a share will be lowered to ease the company’s debt. More »

The Tribune Tower is seen along Chicago's Michigan Avenue in this June 20, 2006, file photo. The Tribune Co. remained silent Sunday, April 1, 2007. as its board of directors reportedly met to vote on...   (Associated Press)
Billionaire real estate investor Sam Zell answers a question during an interview in Chicago in this March 20, 2007 file photo. Sam Zell was viewed as a savior in some quarters last spring when he swooped...   (Associated Press)
Lifelong Chicago Cubs fan Jerry Pritikin joins the faithful on opening day outside Wrigley Field which is up for possible sale along with the Cubs as a result of the deal for Tribune Company to be acquired...   (Associated Press)
A couple walks past the front entrance to the Tribune Tower in this March 30, 2007 file photo, in Chicago. Sam Zell was viewed as a savior in some quarters last spring when he swooped in with an $8.2...   (Associated Press)
Billionaire real estate investor Sam Zell smiles during an interview in Chicago in this March 20, 2007 file photo. Sam Zell was viewed as a savior in some quarters last spring when he swooped in with...   (Associated Press)
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Chicago  • Chicago Cubs  • FCC  • acquisitions  • JPMorgan Chase  • shareholders  • Tribune Company  • Sam Zell  • privatization  • Los Angeles Times  • takeover


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