Tribune Co. of Chicago and its largest shareholder, California's Chandler family, had hoped to find a way out of their unhappy union when the media company went on the auction block this fall.
But nearly three months after the Chandlers forced Tribune to explore a possible sale or breakup, several prospective buyers have come forward -- so far only to express preliminary interest. None has made a binding offer for the company that owns the Los Angeles Times, KTLA-TV Channel 5 and the Chicago Cubs baseball team.
Now the Chandlers and Tribune's management appear to be preparing to fill the void themselves by considering making competing bids for all or parts of the company that they have held in an uneasy alliance for six years.
The Chandlers have been in discussions with billionaire Ron Burkle's investment firm, Yucaipa Cos., about making a joint offer for some or all of Tribune's assets, said two people who are familiar with their plans. The family already owns 20% of Tribune's stock.
Meanwhile, Tribune executives, led by Chief Executive Dennis J. FitzSimons, are expected to enter a bid of their own in alliance with a consortium of three private investment firms, one of the group's advisors said.
The management consortium includes Providence Equity Partners of Rhode Island, Apollo Management of New York and Madison Dearborn Partners, a Chicago investment firm that is said to have particular interest in owning part of the hometown media giant.
The entire bidding process is cloaked in secrecy, producing few public statements. Sources familiar with the potential bids agreed to discuss them on condition of anonymity, saying they had not been authorized to speak publicly about a deal. They did not disclose details, including how much the two groups might offer for the company, which is worth $7.58 billion based on Friday's closing stock price of $31.75.
Tribune owns 11 daily newspapers, two dozen television stations and parts of cable TV's Food Network and the Internet job site CareerBuilder.
Alan Mutter, a San Francisco analyst and investor who focuses on media companies, called talk of Tribune's future "very speculative and fluid."
A showdown between the Chandlers and Tribune management made sense, he said, given the tepid response of other potential buyers.
