L.A. billionaires increase bid for Tribune Co.

LOS ANGELES (AP) — Billionaires Eli Broad and Ron Burkle upped their bid Thursday for Chicago-based media company Tribune Co., offering a total deal that would exceed one currently being offered by real estate magnate Sam Zell, a person familiar with the offer told The Associated Press.

Broad and Burkle sent a letter to the Tribune board offering $34 per share in a recapitalization scheme that would involve an employee stock ownership plan, said the person who asked to remain anonymous because they were not authorized to disclose details.

The two Los Angeles billionaires also offered to contribute $500 million in cash to he deal.

The offer exceeds Zell’s bid of $33 per share.

The competing offer by Zell had been thought to be the company’s favored choice. Zell’s bid is reportedly valued at about $8 billion, excluding debt.

The nation’s second-largest newspaper publisher by circulation also is said to be considering a “self-help” plan that would involve spinning off the company’s broadcast division and borrowing money to pay a one-time cash dividend to shareholders.

Zell spokeswoman Terry Holt and Tribune spokesman Gary Weitman both declined to comment Thursday on the status of a possible sale to Zell.

Tribune owns the Chicago Tribune, the Los Angeles Times and nine other daily newspapers, as well as 23 TV stations and the Chicago Cubs baseball team.

Like most newspaper companies, Tribune has been struggling with declining profits, circulation and advertising revenue. Last week, the company announced its revenues fell 3.4 percent in February as its publishing division continued to struggle.

Tribune shares closed up 40 cents to $31.53 in trading Thursday on the New York Stock Exchange.

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