Citadel Wants To Renegotiate ABC Deal
August 21, 2006 at 5:41 AM (PT)
The WALL STREET JOURNAL is reporting that CITADEL is trying to renegotiate the deal to buy ABC RADIO's stations and networks due to CITADEL's stock price decline. CITADEL's stock has fallen 27% since the purchase was announced, a slide that could trigger a larger payment to ABC parent THE WALT DISNEY CO.
The paper says that CITADEL is seeking to change terms of financing for the purchase but that negotiations have not yet begun. In an interview, CITADEL CEO FARID SULEMAN said that the problems have arisen because "the performance of the ABC stations is not where it was expected to be. Some of the financing commitments have to be redone."
Read the JOURNAL report by clicking here (subscription required).