Jacobs: Buy Back Stock, Not Other Stations
September 19, 2007 at 9:56 AM (PT)
In an interview with the CINCINNATI POST, REGENT BROADCASTING founder and current stockholder TERRY JACOBS offered a historical perspective that would lead to the lawsuits filed by RILEY INVESTMENT and SMH CAPITAL, which prompted their recent additions to the radio group's Board of Directors.
JACOBS, who still owns 400,000 shares of REGENT stock, cited to a meeting he had with the radio group's top executives two years ago, when there was a clear disagreement on where to take the company. JACOBS suggested taking the company private or merging with another group; REGENT execs felt otherwise and tried to grow the company through acquisition. The big deal: spending $125 million last year for five CBS stations in BUFFALO.
That money would've been better spent on buying back its stock, which would give REGENT more control over its stock price, which at the time was around $4 a share, he contended. Currently, it's trading for about $2.63 a share -- which is up after news that RILEY INVESTMENT MGMT. principal JOHN AHN and former LINCOLN FINANCIAL MEDIA Radio CFO JOSEPH HANNAN were added to REGENT's board.
REGENT told the POST that it's concentrating on the future, not the past. "Our strategy has always been to maximize shareholder value," CFO/EVP TONY VASCONCELLOS said. "We're very happy to get this behind us -- it was expensive and distracting."
The new REGENT board will meet for the first time for a rescheduled meeting next month.