The Tribune Company’s second largest shareholder called for a break-up of the media company, accusing the company of pursuing a failing to keep up with competitors. In a letter to the company’s board, the Chandler family also accused the Tribune management of pursing a failed strategy of for melding local TV stations and newspapers.
The Chandlers also stated that they would not tender their shares in the stock buyback plan announced May 30 and wanted a special committee to oversee the company’s management and strategy.
The rest of the board rejected the arguments laid out by the Chandler Trust.
William Osborn, Tribune’s lead independent director, responded to the Chandlers in a statement late Wednesday: “Tribune’s Board of Directors evaluated a broad range of strategic alternatives at numerous meetings over a period of months. The actions suggested by the Chandler Trusts in today’s letter were considered by the board prior to its approval of the tender offer. After receiving recommendations from management and the board’s outside financial and legal advisors, all the directors except those representing the Chandler Trusts approved the tender offer as being in the best interest of all shareholders.”