Shares in The Tribune Company (TRB) are off almost 4% today to $24.57. The price promised for an LBO lead by Sam Zell is $34.
The deal is now likely to die, in which case the public shareholders can hang onto the company, probably with the stock falling further.
Or, Zell can renegotiate in much the same way the the buyers of Home Depot (HD) Supply have. The debt needs to deal of this kind has simply gotten too expensive.
Zell’s best bet may be to walk. Dow Jones (DJ) announced yesterday that ad lineage at The Wall Street Journal fell almost 21%.
And, Zell can read the papers.
Douglas A. McIntyre
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