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Buyout firms including Texas Pacific and Apollo Management have decided not to make takeover bids for Tribune Co, owner of the Chicago Tribune and Los Angeles Times, sources say.
Texas Pacific had teamed up with Thomas H. Lee Partners to explore a takeover, while Apollo had joined with Madison Dearborn Partners and Providence Equity Partners, the sources said.
Bids for Chicago-based Tribune, which has a market value of US$7.3 billion ($10.57 billion), are due today.
The absence of bids would be a setback to Tribune chief executive Dennis FitzSimons after the company spent four months searching for a buyer.
"If we assume that Tribune has thrown its party and no one has shown up, I think that paves the way for additional share repurchases or a restructuring," said Barry Lucas, at Gabelli & Co in Rye, New York.
One group that was still considering an offer includes California billionaires Ron Burkle and Eli Broad, a person with knowledge of their plans said. No bid for Tribune is likely to include a significant premium to the current share price, the person said.
- BLOOMBERG
