• New York Times, Thursday, June 8, 2006 11:04 AM

The three Tribune Co. directors opposed to the company's huge stock buyback plan voted against the proposal because it does nothing to address basic problems the company faces, reports The New York Times, citing an anonymous source. The dissenting trio represents the Chandler Trusts, which own 12.2 percent of the company's shares. Their opposition was revealed earlier this week in a filing with the Securities and Exchange Commission. The stock repurchases, designed to prop up the company's sagging valuation, could add as much as $2 billion to its debt. "My speculation is they wanted something bigger to happen," says one Tribune shareholder. "They saw the repurchase as a half-step." And there may be concern, he adds, that the debt caused by the stock buyback will make the company less attractive to buyers.

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