Real estate tycoon to buy LA Times

04 April 2007

The owners of the Los Angeles Times newspaper has agreed to be bought by property magnate Sam Zell, who won the $8.2-billion bidding war for Tribune Corporation, who warded-off fierce competition from businessmen Eli Broad and Ron Burkle for control.

Last year Zell, founder of real estate firm Equity Office Properties Trust, sold out to private equity firm Blackstone for $36 billion.

With this acquisition, which requires shareholder and regulatory approval Zell will control about 40 per cent of the firm's shares and become the largest shareholder of the Tribune Corporation. Employees will own a significant minority stake in the business.

Tribune Corporation had received three bid offers, of which two offers were believed to be for the entire print and broadcasting business of the company and one, including one from the Carlyle Group and two investors, just for Tribune's 25 TV stations.

The Tribune group also owns, Chicago Tribune, Newsday, Baltimore Sun, Orlando Sentinel and Hartford Courant, TV stations and the Chicago Cubs baseball team.