By Greg Hazley
Citadel Broadcasting, the No. 3 radio group with more than 200 stations in 50-plus markets, has rejected a $2B takeover bid by Cumulus Media, the second largest radio operator.
Las Vegas-headquartered Citadel blistered the surprise offer as “nothing more than a heavy-handed ploy to advance its own interests at the expense of Citadel and its shareholders.”
Its financial advisers, Lazard and JP Morgan Securities, studied the offer and determined it “was neither credible nor at an appropriate valuation. They also worry about the “uncertainty surrounding what would be a lengthy and complex regulatory review process.”
Citadel, which uses Sard Verbinnen & Co. for media work, remains open to “carefully considering any credible acquisition.
Atlanta-based Cumulus, which has about 350 stations in nearly 70 markets, says its $31 per-share offer represented a 71 percent premium to what Citadel shares had been trading.
CEO Lew Dickey is puzzled why Citadel chairman John Sander is “unwilling to engage with us to explore a transaction” that would benefit shareholders of both companies. He also counts plusses like national network expansion, corporate overhead reduction and increased scale.
Dickey and his financial team want to meet with Dickey to discuss the proposed deal “in conformity with your fiduciary duties.”
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