By: The Teamsters Union said Monday it will bring a delegation of union leaders and newspaper workers to a Tribune Co. (NYSE:TRB) special shareholders meeting to warn investors that employees will bear too much of the burden in the company's proposed sale.
Tribune is holding the meeting Tuesday to vote on the $8.2 billion buyout offer for the media conglomerate by a group of investors led by billionaire Sam Zell.
Under the proposed deal, an employee stock ownership plan -- which resembles a profit-sharing plan -- will become the majority owner of Tribune once the deal is complete.
The Teamsters said they will 'warns investors, employees and creditors about the dangers of the company's proposed reorganization' into an ESOP.
At the company's annual meeting in May, the Teamsters Union registered the same concerns, saying the employee stock ownership plan will leave workers shouldering the financial and operational burden while Zell gains control with a small cash contribution.
Zell is investing $315 million in financing in the deal and will have the right to purchase 40 percent of the company's stock later.
The Teamsters Union added it will also demand employee representation on the company's ESOP and board of directors.
Tribune owns and operates 11 daily papers, including the Chicago Tribune and the Los Angeles Times, as well as 23 TV stations and the Chicago Cubs.
Tribune shares rose $1.35, or 5.3 percent, to close at $27.02.
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