Tribune Company, As Agent of and Successor By Merger to the Former the Times Mirror Company, Itself and its Consolidated Subsidiaries - Page 9

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          directors was part of the November 17, 1997, briefing packet.               
          The section of the November 17, 1997, briefing packet entitled              
          “Executive Summary” contained the following statements:                     
               The major strategic alternatives, or some combination                  
               thereof, that are open to Times Mirror are the                         
               following:                                                             
               1.  Hold                                                               
               2.  Divest                                                             
               3.  Swap                                                               
                         *    *    *    *    *    *    *                              
               A key issue in any decision to divest or swap will be                  
               the potentially large tax liability on the gain on the                 
               sale due to our low basis in Matthew Bender.  Our                      
               preliminary work indicates that there may be a variety                 
               of transaction structures which allow us to minimize                   
               this tax expense.                                                      
                         *    *    *    *    *    *    *                              
               Our preliminary analysis shows that with the very high                 
               premiums currently being offered for legal * * *                       
               publishing operations, more after-tax value could be                   
               created through divestiture than by keeping these                      
               companies.  This value is enhanced considerably if the                 
               divestiture could be accomplished through a                            
               tax-advantaged structure.                                              
                         *    *    *    *    *    *    *                              
               The decision to explore strategic alternatives for                     
               Mosby Matthew Bender is not easy nor a happy one.                      
               * * *  However, the facts are that the competitive                     
               environment for * * * legal * * * publishing has                       
               changed dramatically * * *.  Matthew Bender is a very                  
               distant third in U.S. legal publishing with a weakening                
               future competitive position.  * * *                                    
               Considering these recent developments, we recommend to                 
               the Board that it authorize the exploration of the                     
               divestiture of Matthew Bender, including Shepard’s                     
               * * *                                                                  






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