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Shareholders give approval to Tribune buyout

By Times Wires
Published August 22, 2007

Chicago

Tribune Co., which owns the Chicago Tribune newspaper, as well as the Orlando Sentinel and South Florida Sun-Sentinel, said shareholders consented to the $8.2-billion buyout of the media conglomerate Tuesday, an expected but noteworthy milestone in a drawn-out transaction that awaits federal approval and billions of dollars in promised financing. The meeting was marked by unions' complaints that employees of the soon-to-be employee-owned firm will have no formal role in running it. Some shareholders also voiced concerns about its ability to operate in a struggling newspaper industry under a mountain of debt. Preliminary results indicated 97 percent of those casting votes, representing a majority of shares, had approved the $34-a-share April 1 deal led by billionaire Sam Zell.

Philadelphia

Ginnie Mae sues bankrupt lender

The Government National Mortgage Association has demanded that bankrupt American Home Mortgage Holdings Inc. hand over about $450-million worth of home loans it is servicing. In papers filed with the U.S. Bankruptcy Court in Wilmington, Del., Ginnie Mae cited worries about a "serious disruption" for those whose mortgages are entangled in American Home's collapse. American Home, based in Melville, N.Y., has already been hit with actions by Credit Suisse First Boston, Morgan Stanley, Impac Funding Corp. and Deutsche Bank, calling for it to surrender loan documents and cash tied to mortgages they own.

McLean, Va.

Capital One to halt residential unit

Capital One Financial Corp. said Monday that it would stop making residential mortgages and close GreenPoint Mortgage, its wholesale mortgage banking unit. About 1,900 employees will be laid off, most of them by the end of the year. The company will also close GreenPoint's headquarters in Novato, Calif., along with 31 locations in 19 states. Capital One acquired GreenPoint as part of its purchase in December of the North Fork Bancorp.

[Last modified August 22, 2007, 01:06:08]