By Lisa Kerner
Charlotte, N.C., Jan. 18 - The Chandler Trusts proposed acquiring and spinning off a portion of the Tribune Co. for $19.30 cash per share plus shares in the newly formed company, according to a schedule 13D filing with the Securities and Exchange Commission.
The total value to Tribune shareholders is estimated at $31.70 per share. Members of The Chandler Trusts own 20.2%, or about 48.1 million shares, of Tribune.
In its proposal letter, The Chandler Trusts said its proposal represents "a significant premium to the unaffected trading value of Tribune common stock." The stock has been trading at an artificial level, up roughly 9.4%, since an announced tender offer in June 2006, according to the filing.
Spinning off Tribune Broadcasting as a separate company will "unlock substantial value for Tribune stockholders," The Chandler Trusts stated.
Closing of the transaction is expected to be within six months following the receipt of financial statements.
The Tribune is a Chicago-based media and entertainment company.
| Acquirer: | The Chandler Trusts
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| Target: | The Tribune Co.
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| Payment per share: | $31.70 cash and stock
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| Announcement date: | Jan. 18
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| Expected closing: | To be determined
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| Stock price for target: | NYSE: TRB; $30.34 on Jan. 17
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