Tribune Co. shareholders are being advised by ISS, Egan-Jones Proxy Services, Proxy Governance and Glass Lewis proxy-voting advisory services to approve a buyout plan to take the company private at a special meeting Tuesday. The $2.4 billion deal will involve buying 126 million publicly held shares for $34 each.
An ESOP formed for the buyout and financier Sam Zell would jointly acquire the company and Mr. Zell would become chairman if the deal goes through. He is investing $315 million and will have a warrant entitling him to acquire 40% of the company.
The advisory firms noted the initial 5.9% premium before the offer was announced March 31 has grown significantly. Based on todays midday trading price of $26.85, the premium has risen to 26.6%.