Tribune Board Is Considering A Broad Overhaul

TRIBUNE BOARD IS CONSIDERING A BROAD OVERHAUL
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison@wsj.com & Dennis K. Berman]
The board of Tribune Co. since January has been seriously considering a restructuring that would include a spinoff of the company's broadcasting group and could pave the way for the eventual sale of the rest of the company, according to people familiar with the situation. The Chandler family trusts, which are Tribune's second-largest shareholder and which nominated three of the board's 11 directors, have been involved in the discussions, and all parties appear to agree on exploring a broadcast spinoff, these people said. But the Chandlers disagree with Tribune's management over the timing and strategy of the move, which would entail months of complex and costly preparation. In part, the Chandlers, who formerly ran the Los Angeles Times and became major Tribune shareholders with the 2000 sale of Times Mirror Co. to Tribune for $8.3 billion, are unhappy over the $2 billion stock-buyback program that Tribune announced last week. The three Chandler-nominated directors voted against the buyback, according to a company securities filing on Tuesday. The discussions suggest Tribune is more seriously considering a breakup of the 160-year-old media conglomerate than previously had been known. Chicago-based Tribune controls a wide range of broadcast properties and newspapers, including 26 TV stations as well as the Chicago Tribune, the Los Angeles Times, Newsday of Long Island, N.Y., and other newspapers. The talks also suggest that a breakup would have the support of the Chandler Trusts, which control 12.2% of Tribune.
http://online.wsj.com/article/SB114973387435674567.html?mod=todays_us_page_one
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See also at: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/07/AR2006060702256.html

* Chandlers in Dissent at Tribune Co.
http://www.latimes.com/business/printedition/la-fi-tribune8jun08,1,3923407.story?coll=la-headlines-pe-business