Tribune Buying Back $2B in Stock

TRIBUNE BUYING BACK $2 BILLION IN STOCK
[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
The Tribune Company has decided to spend $2 billion buying back its own shares. The buyback is immense for a company the size of the newspaper publisher and broadcaster, representing around 25% of all of the company’s outstanding shares. Tribune is moving for an instant effect in its stock price. While most companies spread their buyback programs over many months, Tribune will immediately tender for up to 53 million shares in the open market. The company will buy another 10 million shares from its largest shareholders, the McCormick Tribune Foundation and Cantigny Foundation. Finally, Tribune will buy another 12 million shares in the open market. The company plans to borrow money to finance the buyback, but will partly offset that by selling around $500 million in assets. Tribune would not specify what would go on the block, citing only non-core broadcasting and publishing assets, real estate and securities. On possible asset is a 31% stake in Food Network that Morgan Stanley media analyst Doug Arthur estimates that Tribune estimates is worth $800 million.
http://www.broadcastingcable.com/article/CA6338945?display=Breaking+News
* Tribune's Response To News Blues: A Big Buyback
http://online.wsj.com/article/SB114900492721266404.html?mod=todays_us_pa...
(requires subscription)