Tribune shares rise as stock upgraded

TRIBUNE SHARES RISE AS STOCK UPGRADED
[SOURCE: Associated Press]
Shares of Tribune Co. rose Tuesday as a Barrington Research Associates analyst upgraded the media company, citing its attractive share price as a chance to capitalize on Tribune's proposed buyout. The company, which agreed to an $8.2-billion buyout offer from real estate mogul Sam Zell earlier this year, has faced increased speculation that the deal may fall through. However, analyst James Goss said Tribune's current trading price of significantly discounts risk of the proposed transaction collapsing. "As we draw closer to the prospective targeted year-end closing date, the potential upside over the short time frame becomes magnified," he wrote in a client note, upgrading Tribune to "Market Perform" from "Underperform." Goss expressed confidence in Zell's ability to access capital for the buyout, as well as his ability to handle cross-ownership hurdles that may arise if the Federal Communications Commission fails to grant Tribune waivers from rules banning same-market ownership of television and newspapers.
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