Thursday, April 26, 2007
Tribune began the first stage of its $8.2 billion LBO by commencing the tender offer for one-half its shares at $34 per share. Meanwhile, Tribune's deteriorating financial condition raises questions about whether it will be able to service the debt created by the LBO. It reported a 6% decline in print-advertising revenues, compared with February projections of only a 3% decline. The Chandler Trust, the 20% shareholder that is the driving force behind the LBO, will sell as many of its shares in the tender offer as it can. See WSJ, Tribune Opens Offer For Half of Its Shares.