By: Tribune Co. said Tuesday that based on a preliminary count, about 15 percent of the media company's outstanding shares were tendered in its Dutch auction buyback, and Tribune expects to acquire all 45 million of those common shares at $32.50 apiece.
Pursuant to terms of purchase agreements with the McCormick Tribune Foundation and the Cantigny Foundation, Tribune also will buy back 10 million shares on July 12 at $32.50 per share. Tribune plans to repurchase up to an additional 20 million shares in the open market beginning on or after July 12.
"We are pleased with the successful conclusion of the tender offer. This leveraged recapitalization represents a very meaningful step in our plan to enhance value for shareholders," said Dennis FitzSimons, Tribune chairman, president and chief executive officer. "Now, our priority is to improve operating performance through a combination of top-line growth initiatives and additional cost savings. We'll also continue to move forward on dispositions of non-core assets."
Merrill Lynch & Co. and Citigroup served as co-dealer managers for the tender offer. Georgeson Shareholder Communications Inc. served as information agent and Computershare Trust Co. served as the depositary.
The four-week period for shareholders to respond to the tender offer expired at midnight Monday. Under the buyback plan, which was opposed by the dissident Chandler family, shareholders were allowed to tell Tribune a price at which they were willing to sell their shares between $28 and $32.50. Tribune would have been able to purchase up to 53 million shares from the auction in all. Repurchasing the stock at $32.50 represents a 5 percent premium over Monday's closing price.
In addition to its $2 billion buyback plan, Tribune plans to sell at least $500 million in noncore assets as part of its strategy.
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