August 11, 2017 (Shareholders Foundation) - An investor, who currently holds shares of Tribune Media Co (NYSE:TRCO), filed a lawsuit in effort to halt the proposed takeover of Tribune Media Co by Sinclair Broadcast Group, Inc for $43.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:TRCO stockholders by agreeing to sell Tribune Media Co cheaply via an unfair process.

On May 8, 2017, Sinclair Broadcast Group, Inc. and Tribune Media Co (NYSE:TRCO) announced that they have entered into an agreement under which Sinclair will acquire 100% of the issued and outstanding shares of Tribune Media Co (NYSE:TRCO) for $43.50 per share, for an aggregate purchase price of approximately $3.9 billion, plus the assumption of approximately $2.7 billion in net debt. Under the terms of the agreement, Tribune Media Co (NYSE:TRCO) stockholders will receive $35.00 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Media Co (NYSE:TRCO) Class A common stock and Class B common stock they own.

However, plaintiff claims that the proposed consideration NYSE:TRCO shareholders will receive with Sinclair Broadcast Group, Inc offer is grossly inadequate and undervalues Tribune Media Co. Indeed, at least one analyst has set the high target price for NYSE:TRCO shares at $45.00 per share. In addition, the plaintiff alleges that the process is also unfair NYSE:TRCO stockholders.

Shares of Tribune Media Co (NYSE:TRCO) closed on May 15, 2017 at $40.84 per share.