Tribune Deal Crosses Hurdle

Shares jump as the FCC signals it will grant temporary cross-ownership waivers.
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Updated from 4:40 p.m. EST

Shares of

Tribune

(TRB)

surged 10% Wednesday as it became increasingly likely that the media giant's rocky buyout will close soon.

Federal Communications Commission Chairman Kevin Martin said he is proposing temporary waivers that will allow Tribune to own a newspaper and broadcast station in the same market. In a statement, Tribune said that the proposal will allow it to close its going-private deal by the end of the year, if approved.

Martin wants to vote on the waivers by Friday, according to

The Associated Press

.

The waivers come as the FCC debates a broader plan on changing so-called

cross-ownership rules. Tribune currently owns newspapers and TV stations in five markets.

The $8.2 billion buyout led by Chicago real estate magnate Sam Zell has hit snags due to the ownership rule, leading to worries about when, and if, it might close. The deal has to close by the end of the year for tax-related advantages.

Shares of Tribune closed up $2.75 to $30, still below the $34-a-share buyout price.