CHICAGO, March 28 (UPI) -- Chicago real estate mogul Sam Zell could saddle Tribune Co. with billions of dollars in debt if he wins the bidding war as expected, analysts said. If Zell contributes $300 million to a deal worth $8 billion to $11.
5 billion, the rest would be financed with debt that "is way too high" for a "declining business," Lehman Brothers analyst Craig Huber said. Other recent newspaper buyers have been caught off guard by how fast the newspaper industry is deteriorating, as cable and the Internet continue to woo away readers and advertisers, Huber said. Zell may also end up fighting the U.
S. Federal Communications Commission to extend waivers letting the company operate both newspapers and TV stations in Chicago; Los Angeles; New York; and Hartford, Conn., The New York Post reported.
Zell has said he would keep Tribune's TV stations and newspapers, which include The Chicago Tribune, Los Angeles Times, Newsday and Hartford Courant. Tribune, which has examined its strategic options since September, has said it would decide by Saturday on a plan to increase shareholder value. The company owns 11 newspapers, 23 television stations and the Chicago Cubs.
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