Bowing to the headlines

30 May 2006 By Rob Cox Follow @rob1cox

The US newspaper group will buy back a quarter of its stock. Finally it has recognized it’s not in a growth business. Others should follow. The irony, however, is that the shareholderfriendly buyback could make the company impervious to KnightRidder style activism.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Context News

Tribune said it will launch a buyback of up to 75m shares, or about a quarter of its outstanding equity, because it views its stock as undervalued.

The publisher of the LA Times and Chicago Tribune said it will buy 53m in a modified "Dutch auction" at prices between $28 and $32.50. Another 12m may be repurchased on the open market and 10m more will be tendered by the McCormick Tribune Foundation.

The company will finance the $2bn of repurchases through debt and the sale of $500m of assets, which have not been identified. In addition, Tribune said it will seek to cut $200m of additional costs at the company over the next two years.

Email a friend

Please complete the form below.

Required fields *

Bowing to the headlines

This content is for Subscribers only

Existing Users Log In

Email a friend

Please complete the form below.