Goldman Sachs: Tribune Shares Not Expected to Rise After Review

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By: E&P Staff

Goldman Sachs issued a rare note on the Tribune Co. evaluating the possible auction outcomes that have been floating around in the press.

Goldman Sachs’ investment division, which is separate from the research arm, is advising Tribune on the process. Subsequently, Goldman Sachs is not rated on Tribune.

Of the potential reported bids speculated in the press, including a public leverage buyout by Ron Burkle and Eli Broad and a Chandler family-led recap, Goldman Sachs research thinks the private transaction led by Sam Zell and a management led recap have the most chance of happening since it appears those options “are getting the most serious consideration.”

After all is said and done — the strategic review deadline is March 31 — Tribune will probably get no lift to its shares, wrote analysts. “While disappointing to shareholders, this outcome is not surprising given the absence of strategic bidders, an apparent low level of interest from private equity firms, and the company’s already high level of financial leverage,” wrote analysts.

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