Tribune Opens Door to Possible Sale

TRIBUNE OPENS DOOR TO POSSIBLE SALE
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison@wsj.com and Julia Angwin julia.angwin@wsj.com]
Tribune Co's board voted to establish a special committee of independent directors to explore alternatives for "creating additional value for shareholders," opening the door for a sale of the company or a management buyout. The decision, made in a five-hour board meeting in the company's Chicago headquarters, comes after growing pressure for drastic action from shareholders frustrated with the company's long stagnant stock price. In June, Tribune's biggest shareholder, the Chandler family, publicly called on Tribune's board to consider breaking up the company. Tribune, which has a market capitalization of about $8 billion, owns major newspapers such as the Los Angeles Times, New York's Newsday and the Chicago Tribune as well as a group of 25 TV stations and the Chicago Cubs baseball team. The move effectively puts Tribune in play, and will likely prompt private-equity firms and other potential buyers to signal their interest in bidding for part or all of Tribune. There's no certainty the company will finalize a sale. Among options to be considered, Tribune CEO Dennis FitzSimons said in an interview, was splitting the company in two by separating its newspapers and TV stations as well as a management buyout.
http://online.wsj.com/article/SB115885038129270068.html?mod=todays_us_page_one
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