Times Mirror to Reduce Outstanding Stock

Times Mirror Co. said two transactions with its largest shareholder will reduce the amount of its common and preferred stock, boosting earnings by more than 10 cents a share next year. The plan, which involves the creation of a new company to hold cash, stock and Times Mirror-owned real estate, will result in the reduction of shares outstanding of Times Mirror’s main Series A stock by 6 million and the creation of a new preferred stock with a lower dividend rate. The stated value of Times Mirror’s 8% Series A preferred stock would be cut by $367 million. The transactions are the latest in a series of financial moves in the last two years as the Los Angeles-based news and information company improves its balance sheet. “This reduction in common and preferred shares will enable us to achieve our target capital structure,” said Mark Willes, Times Mirror chairman, president and chief executive officer. Willes has been the architect of the company’s profit resurgence since taking over in 1995. Meantime, the Chandler family, which owns about 60% of the company’s stock, will keep its controlling stake in the company. Times Mirror’s shares fell 44 cents to close at $49.50 on the New York Stock Exchange on a day when the Dow Jones industrial average dropped more than 156 points. Times Mirror publishes the Los Angeles Times, Newsday and other newspapers, as well as other publications.