FCC likely to grant Trib waiver

The chairman of the Federal Communications Commission said Wednesday he wants to grant media group Tribune Co. a temporary exemption from U.S. media ownership rules, removing an obstacle to an $8.2 billion leveraged buyout of the company.

FCC Chairman Kevin Martin proposed the agency grant the waivers so the company can proceed with the deal at a time when the FCC is considering his broader plan to relax ownership rules in the largest U.S. cities.

The temporary Tribune waivers proposed by Martin would last for a period of two years, or six months after the end of all litigation connected to the ownership rules.

Martin expected the commissioners to vote on the Tribune proposal by the end of Friday, giving the company the 20 business days it needs to close the deal by the end of the year.

"We are pleased with Chairman Martin's proposal which, if approved, will enable Tribune's going-private transaction to close by the end of the year," Tribune Chief Executive Dennis FitzSimons said in a statement.

Tribune is going private in a deal led by Chicago real estate magnate Sam Zell and needs FCC approval to transfer waivers that allow the company to operate television stations and newspapers in the same markets. A spokeswoman for Zell declined to comment.

FCC Commissioner Robert McDowell said Wednesday the two-year extension for Tribune is "in the right general direction," and Martin's plan for the largest city markets is "reasonable." He stressed he had not read either proposal and had not made a final decision.

Tribune shares closed up $2.75, or 10.1 percent, at $30 on the New York Stock Exchange on Wednesday.