Tribune shares buffeted by last-minute worries over $8 billion buyout

Tribune Co. shares fell sharply today on jitters about a reported last-minute snag with the banks that are supposed to sign off on an $8.2 billion buyout of the company.

Real estate magnate Sam Zell, who is leading the buyout, said last week he hoped to close the deal Thursday after the Federal Communications Commission removed the last apparent regulatory obstacle. But the Chicago Tribune reported Wednesday that since pledging loans earlier this year, banks have grown reluctant to fund the deal's final debt portion amid worsening market conditions.

The report, citing anonymous sources, said the bankers were questioning Tribune executives and poring over company records.

Tribune spokesman Gary Weitman did not immediately return phone calls seeking comment.

The company's stock fell $1.86, or 5.6 percent, to $31.45 in unusually heavy morning trading.

The fate of Chairman and CEO Dennis FitzSimons may be hanging in the balance along with Tribune's financing.

Both the Tribune and the Los Angeles Times, citing unidentified sources, reported that FitzSimons is ready to step down once the buyout closes. The Times, which first reported the story on its Web site Tuesday, said FitzSimons' announcement could come as early as Wednesday.

FitzSimons, 57, would leave Tribune with nearly $40 million in severance and stock holdings, according to corporate disclosure statements cited by the newspapers.

Tribune owns nine daily newspapers, 23 television stations and the Chicago Cubs baseball team, which it has agreed to sell under terms set by Zell, who will become chairman if the deal goes through. The buyout will result in the publicly traded company becoming private.