Shareholders OK Tribune Takeover

But analysts say Zell's bid should be lowered
By Wesley Oliver,  Newser Staff
Posted Aug 21, 2007 1:41 PM CDT
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)
camera-icon View 4 more images

(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declining profitability since the April announcement has triggered speculation that the 26% premium Zell offered is outdated.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.