Sam Zell is in continuing talks with Tribune Company over his bid to buy it, the AP reported yesterday. Though details aren't available, it is believed Zell is revising his bid for the diversified media company which controls some of America's largest newspapers, local TV stations and the Chicago Cubs. Tribune management has reportedly become concerned about Zell's proposed offer involving too large an amount of debt considering the weakening outlook for newspapers. Zell's new bid may raise the size of the equity portion of his bid while lowering debt, rather than an overall increase in the per-share offer price. Zell told the AP that he has no plans to break up the company's various assets. "We cannot look at it from a breakup perspective," he said.
Sources: Wall Street Journal, AP
Commentary: A Sam Zell Takeover May Be Tribune's Best Bet - Barron's • Tribune Reviewing "Self-Help" Plan • L.A. Times Editor Spells Out Its Troubles
Stocks/ETFs to watch: Tribune Company (TRB). Competitors: Gannett Co. (GCI), The New York Times Co. (NYT), The Washington Post Co. (WPO), The McClatchy Company (MNI)
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