Law Firm 'Investigating' Citadel Inaction On Cumulus Buyout Bid
January 25, 2011 at 2:40 PM (PT)
As expected, CITADEL BROADCASTING's refusal to consider the buyout offer from CUMULUS MEDIA is getting the attention of law firms seeking to represent shareholders. HARWOOD FEFFER LLP has issued a press release saying it is "investigating possible breaches of fiduciary duty" by CITADEL's board in the CUMULUS matter and is offering help to CITADEL common stockholders who want to discuss their options.
CITADEL's actions regarding CUMULUS' bid has drawn much attention recently (NET NEWS 1/24), including a NEW YORK TIMES article about shareholders saying they feel "victimized" by the board's refusal to consider the buyout bid and are concerned that the inaction is aimed at helping CEO FARID SULEMAN hold onto his job at the expense of shareholders, a notion the company has denied.