Tribune Co. plans to buy back outstanding shares--Fitch lowers ratings

Tribune Co., in a move that will boost its stock price but saddle the company with a punishing debt load, today disclosed a plan to buy back a quarter of its outstanding shares at a cost of at least $2 billion...On its face, the move appears to be a bid to return cash and calm restless shareholders, and to provide a vehicle for those who want exit the stock. Tribune may also, however, be angling to render itself less attractive to any potential suitor: its whopping post-buyback debt of nearly $6 billion will make it hard for leveraged-buyout companies to borrow against Tribune's assets. Under the plan Tribune unveiled today, the company will sell off an undisclosed grab-bag of "noncore" assets, which officials explicitly said won't include the Chicago Cubs baseball team, to raise an estimated "at least" $500 million.

Read the article on the Chicago Tribune's website HERE or through the Proquest database HERE Read a related article about the Tribune Co's stock woes from Crain's Chicago Business HERE

In related news, the Tribune Co. recently settled an SEC probe. Read the Chicago Tribune coverage HERE