Report: Some Citadel Shareholders File Suit Challenging Cumulus Deal
May 9, 2011 at 6:12 PM (PT)
A suit has been filed by some CITADEL BROADCASTING shareholders challenging CUMULUS MEDIA's purchase of the company, reports the ASSOCIATED PRESS.
According to AP, the suit, filed FRIDAY in DELAWARE, alleges that the $37 per share price being offered by CUMULUS is insufficient and that CITADEL should have held out for something closer to what it says the average offer price for radio companies has been in the last five years, a premium of 80% above the stock price. CUMULUS' offer is less than 9% above CITADEL's closing price the day before the CUMULUS deal was announced.