Tribune deal speculation pointing to management

TRIBUNE DEAL SPECULATION POINTING TO MANAGEMENT
[SOURCE: Chicago Tribune, AUTHOR: Michael Oneal and Becky Yerak]
As the auction for Tribune Co. winds down to its Jan. 17 bid deadline, a key question emerging from the situation is what role, if any, Tribune Co. management will play in a possible deal for the company. The question gained new currency on Thursday, when two foundations with close ties to the company announced they had hired New York's Blackstone Group to advise them as they consider alternatives for their combined 13.1 percent stake in Tribune stock. Since the foundations -- charitable organizations set up by Robert R. McCormick, the legendary editor and publisher of the Chicago Tribune -- are controlled by current and former Tribune Co. management, the move raised speculation that they might be gearing up to support some sort of management buyout of the company. Sources close to the situation said the special Tribune board committee in charge of the process likely would frown on any management effort to guide a buyout, since it could raise conflict-of-interest issues. But they also said there is little doubt that Tribune's top managers, led by Chairman and Chief Executive Dennis FitzSimons, would like to keep their jobs and continue running the company. Under the right circumstances, they said, management would likely try to participate in a deal for the company, and such a transaction could be made easier now that the McCormick Tribune Foundation and the Cantigny Foundation have officially signaled a more active stance.
http://www.chicagotribune.com/business/chi-0701060150jan06,0,4260694.sto...