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Citadel/ABC Deal Revised

S

SirRoxalot

The Citadel deal to "purchase" ABC radio stations is being rewritten. ABC shareholders will end up with 57% of the combined company instead of 52%. Citadel may also have to come up with an extra $250-million in cash because their stock price has continued to decline.

The decline in Citadel's stock price has been blamed on the ABC acquisition. ABC properties have also declined in value since the deal was announced.

The deal is expected to close by May 31, 2007. If it doesn't, either party can dissolve the deal on June 15, 2007.

Get more details from MarketWatch.
 
SirRoxalot said:
The Citadel deal to "purchase" ABC radio stations is being rewritten. ABC shareholders will end up with 57% of the combined company instead of 52%. Citadel may also have to come up with an extra $250-million in cash because their stock price has continued to decline.

The decline in Citadel's stock price has been blamed on the ABC acquisition. ABC properties have also declined in value since the deal was announced.

The deal is expected to close by May 31, 2007. If it doesn't, either party can dissolve the deal on June 15, 2007.

Get more details from MarketWatch.
Click to expand...

The MarketWatch story follows this report from Inside Radio, 11-22-06:

Citadel wins a $300 million break in the price it's paying for ABC Radio.
Hard-nosed negotiator Farid Suleman scores a big one - after watching ABC slip since they set the terms back in February. Inside Radio told you November 10 that Disney admitted to having "discussions about possible modifications" to the terms. Now on the eve of Thanksgiving Citadel says "the potential amount of cash retained by Disney has been reduced by $300 million in the aggregate."
Click to expand...
 
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