This is beginning to sound like the toddler who insists she can hold her own hand to get across the street … As has been possible all along given the tenor of the talk around the bids (and non-bids), the Tribune Company is likely to go its own way. The WSJ reports that board members — just guessing that would be the board members who aren’t bidding for the company — call it a “self-help plan” and it’s hard to find fault with their assessment that it would be “an underwhelming conclusion.”
— The current variation of the “self-help” option would involves spinning off the broadcast division and borrowing money for a one-time cash dividend to assuage shareholders.
— The actual value of the broadcasting division is an issue. As WSJ notes, the Carlyle Group offered about $4 billion but price was a sticking point. The division can be spun off tax free, which is a plus for Tribune.
— Meanwhile, another possible bidder or finance option has emerged in the form of Sam Zell, who’s in the money big time thanks to the record sale he just engineered of Equity Office Properties. The Tribune reported his interest last week.
Update: The Tribune did make one small move today, selling free Spanish paper Hoy New York. The company is keeping the Chicago and Los Angeles editions. More from AP.
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