US: Zell's Tribune goes through, CEO FitzSimons steps down

Posted by Jean Yves Chainon on December 21, 2007 at 10:23 AM

Tribune Co. announced Thursday it had completed its move to go private, by merging with an acquisition unit of the Tribune Employee Stock Ownership. Chairman and chief exec Dennis FitzSimons announced he is steping down from his position.

The deal went through after months of concerns, shareholder and bank pressures. Even in the last hours before the deal went through, Tribune shares had plummeted as much as 6% in early trading Wednesday. Towards noon, shares were trading at $31.92, 4.17% down from the opening.

Sam Zell, who financed the $8.2 billion deal, valuing Tribune shares at $34, will become chairman and chief executive of the company.

FitzSimons said that he realized already two months ago that he would be leaving the company. "It was clear Sam wanted to have a more direct, day-to-day role operationally," FitzSimons said in an interview. "[It] seemed to me to make the most sense to have one voice from the top. I think that made the most sense to Sam."

All eyes will now be on Zell and Tribune, to see if the company’s new structure and hierarchy will make the deal pay off.

Source: SFN Blog – MarketWatch - Chicago Tribune through Poynter Romenesko