By: E&P Staff Tribune Co. and the Chandler family whose public complaints about its stock performance put the Chicago media giant in play finally went their separate ways Monday.
Tribune Co. announced the resignations from its board of the three directors representing the Chandler Trusts, Jeffrey Chandler, Roger Goodan and William Stinehart Jr. The Chandler family sold The Times Mirror Co. to Tribune in 2000 in an $8 billion stock-and-cash deal, and were given three seats on the board.
Their resignations were expected once Tribune completed the tender offer that is the first step in going private in a $8.2 billion deal led by Chicago real estate magnate Sam Zell.
Tribune also announced Monday that the Chandler Trusts will be shedding all of their stock in the company.
Before the tender offer, the Chandler Trusts held about 48.1 million shares of Tribune common stock. The trusts now hold about 20.4 million shares, or 17% of the shares outstanding.
"Chandler Trust No. 1 and Chandler Trust No. 2 and certain affiliated stockholders have agreed to sell all remaining Tribune shares through a block trade underwritten by Goldman, Sachs & Co.," Tribune said. None of the proceeds will go to Tribune.
The Chandlers began the process of putting Tribune in play with their public complaints last year about the company's stock performance.
Tribune's board of directors now includes nine members: Dennis J. FitzSimons, Tribune chairman, president and chief executive officer; Enrique Hernandez, Jr.; Betsy D. Holden; Robert S. Morrison; William A. Osborn; J. Christopher Reyes; Dudley S. Taft; Miles D. White; and Sam Zell, who was elected to the board last month.
Zell will become chairman when the going-private transaction closes in the fourth quarter of this year.
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