The owners of the Los Angeles Times newspaper has agreed to be bought by property magnate Sam Zell, who won the $8.2-billion bidding war for Tribune Corporation, who warded-off fierce competition from businessmen Eli Broad and Ron Burkle for control.

Last year Zell, founder of real estate firm Equity Office Properties Trust, sold out to private equity firm Blackstone for $36 billion.

With this acquisition, which requires shareholder and regulatory approval Zell will control about 40 per cent of the firm's shares and become the largest shareholder of the Tribune Corporation. Employees will own a significant minority stake in the business.

Tribune Corporation had received three bid offers, of which two offers were believed to be for the entire print and broadcasting business of the company and one, including one from the Carlyle Group and two investors, just for Tribune's 25 TV stations.

The Tribune group also owns, Chicago Tribune, Newsday, Baltimore Sun, Orlando Sentinel and Hartford Courant, TV stations and the Chicago Cubs baseball team.

The interest shown in the Tribune has been surprising in view of the US newspaper industry suffering from falling sales and advertising revenues in recent years. Newspaper publishers have been struggling to respond to the migration of classified advertising, the bedrock of their business, to the internet.

Last year, the Tribune had launched a strategic review of its business; a move which analysts said would eventually result in the sale of the entire company or its break-up.

Following the deal, Tribune said the stake sale would enable it to invest in its long-term future with more certainty. Dennis FitzSimons, the firm's chief executive, said, as a private company, Tribune would have flexibility to transform the Tribune's publishing, interactive and broadcasting businesses with an eye toward long-term growth.

Last year Knight Ridder, publisher of the Miami Herald and Philadelphia Inquirer, was bought for $4.5 billion last year by rival McClatchy.