Feds probe Tribune Co. deal

The Labor Department has opened an investigation into Sam Zell's leveraged buyout of the Tribune Co., the Chicago Tribune reports.

From the story:

The U.S. Labor Department is investigating Tribune Co.'s employee stock ownership plan, as well as Lisle-based GreatBanc Trust Co., hired by Tribune Co. to serve as plan trustee and represent employee interests in the $8 billion deal, according to Tribune Co. bankruptcy filings.

Court filings show that the Internal Revenue Service also has audited the ESOP, which Zell employed in the novel transaction to shield Tribune Co. from sizeable tax obligations once it went private.