P.M. BRIEFING : Chicago Trib Reacts to Bass’ Move
<i> From Times wire services </i>
CHICAGO —
Tribune Co. today announced a stock repurchase plan under which the company will buy up to 8 million shares of its common stock on the open market.
The action was authorized by the board of directors and followed a report Monday that the Robert M. Bass Group of Fort Worth had bought 2% to 3% of Tribune stock.
The Tribune’s action includes issuing $350 million of a new series of convertible preferred stock to its existing employee stock ownership plan. The proceeds of this sale will be used to buy common stock on the open market.
The company said it will make an initial loan to its ESOP to finance its purchase of the convertible stock. The loan is expected to be refinanced with notes backed by the company.