By: E&P Staff
Tribune Co. said Thursday that it will apply a pro rata factor of about 0.58 as it buys back shares from its massively oversubscribed tender offer.
The tender offer, part of the first step in the Sam Zell-led $8.2 billion deal to take the Chicago media giant private, sought to buy back 126 million shares, or about 52% of shares outstanding, at $34 a share. Tribune shareholders responded by tendering 218.1 million shares, or about 90% of shares outstanding.
Tribune will apply the proration factor to all share stakes tendered except for “odd lots,” lots held by owners of fewer than 100 shares.
After the repurchase, Tribune will have about 117 million shares outstanding.
Tendering shareholders will be paid in cash without interest no later than next Tuesday June 5, Tribune said.
Questions about the tender offer, Tribune said, should be directed to Innisfree M&A at 501 Madison Avenue, New York, NY 10022 or by calling 877-825-8621.