The Deal From Hell (2011)
The Deal From Hell
“Tribune used the money to buy back 126 million shares of Tribune stock at $34 each; pay Citicorp the $2.5 billion it had borrowed to fund the company’s 2006 stock buyback scheme; pay $1.46 million to the Wall Street law firm that had advised the banks involved in the deal; and fork over $161 million to the investment bankers that financed Zell’s acquisition of the company. The transfers and fees paid only for the first phase of Zell’s debt-laden takeover of Tribune Company, but that was enough ...for now: The transfer rescued Tribune shareholders of all stripes, including employees like me. The deal was on.
Love him or hate him, we all owed the grave dancer a vote of thanks. Without Zell in the picture, short sellers and other Wall Street sharks probably would have driven the company’s stock on the open market far below $20 per share. Investors who responded to Zell’s tender offer tried to sell back 90 percent of Tribune’s outstanding stock to the company, but the two-phase buyback had been structured so that Tribune would reacquire only half its shares during the first phase of the deal.MoreLess
Love him or hate him, we all owed the grave dancer a vote of thanks. Without Zell in the picture, short sellers and other Wall Street sharks probably would have driven the company’s stock on the open market far below $20 per share. Investors who responded to Zell’s tender offer tried to sell back 90 percent of Tribune’s outstanding stock to the company, but the two-phase buyback had been structured so that Tribune would reacquire only half its shares during the first phase of the deal.MoreLess
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