Zell to increase Tribune investment

CHICAGO, Dec. 19 (UPI) -- Sam Zell will increase his Tribune Co. investment to close his $8.2 billion leveraged buyout of the U.S. multimedia corporation, Tribune said Wednesday.

The U.S. real estate magnate will increase his investment to $315 million from an initial $250 million investment Zell promised to make in April, said the Tribune, whose newspaper holdings include the Chicago Tribune, Los Angeles Times, Newsday, Hartford Courant and Baltimore Sun.

The investment disclosure came hours after the Tribune newspaper reported banks were increasingly reluctant to fund the deal's final debt portion because of deteriorated market conditions since they first pledged the loans.

The Tribune and Times also reported Tribune Chairman and Chief Executive Officer Dennis FitzSimmons would step down when the $8.2 billion deal closes.

Zell, who is to become Tribune chairman and CEO, hopes to close the deal to take Tribune private Thursday.

The Wall Street Journal reported veteran radio executive Randy Michaels would join the company once the deal closes.

Zell and Michaels go back to the early 1990s when Zell bought U.S. radio station owner Jacor Communications Inc., where Michaels was chief operating officer, and made him president and CEO.

Zell sold Jacor to Clear Channel Communications Inc. in 1999 and Michaels ran its radio division until 2002.

What Michaels' position at Tribune will be is not clear, the Journal said.