Tribune's Zell says FBI contacted him in gov. case

[December 11, 2008]  CHICAGO (AP) -- Tribune Co. Chairman and CEO Sam Zell acknowledged Wednesday that he has been contacted by the FBI in connection with the corruption investigation involving Gov. Rod Blagojevich but declined to discuss the case in any detail.

Zell, referred to indirectly as "Tribune Owner" in federal authorities' complaint Tuesday against the Illinois governor, indicated he didn't know whether Tribune was pressured by Blagojevich and his chief of staff to force the firing of Chicago Tribune editorial writers. In the end, none was fired.

"I'm not personally familiar with any of that, and considering the fact that this is an ongoing criminal investigation, I would feel reticent to comment accordingly," he told CNBC.

Zell, through spokeswoman Terry Holt, declined a Wednesday interview request from The Associated Press.

Federal prosecutors said in the complaint that Blagojevich sought to pressure the newspaper through Zell, the head of its parent company, to dismiss some editorial writers who had raised the issue of the governor's possible impeachment.

Authorities said that during one call intercepted by federal wiretaps last month, Blagojevich's chief of staff, John Harris, told the governor he met with a financial adviser to the Tribune CEO who said Zell "got the message and is very sensitive to the issue."

Asked if the FBI was looking for evidence of pressure being put on Tribune staff, Zell told CNBC: "I think they're asking questions, as far as my knowledge is concerned. The Tribune did not respond at all."

When asked if any pressure was put on the Tribune staffers to change coverage, he said: "I certainly can't speak to that."

Tribune, which owns the Chicago Tribune, the Los Angeles Times and six other major U.S. dailies along with 23 TV stations and the Chicago Cubs baseball team, has been foundering financially since Zell took control last year in a heavily debt-financed buyout. The Chicago-based company filed for Chapter 11 bankruptcy protection Monday.

Prosecutors, citing comments allegedly made on Blagojevich's phone calls, said the governor's office had threatened to withhold state assistance to the struggling company through the Illinois Finance Authority in connection with the possible sale of Wrigley Field, the Cubs' historic ballpark.

But Zell suggested that the company was not in major need of help from the state.

"I think that the issue that we were addressing was whether or not a financing structure which separated the ballpark from the team might be beneficial to everybody involved, particularly guaranteeing the viability of Wrigley Field for the next 30 years," Zell said. "That did not require quote-unquote `assistance,' but it was a question of whether or not it made sense or not. And we never really got to find out since we never took it very far to whether or not that was a viable alternative."

[Associated Press; By DAVE CARPENTER]

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