NEW YORK, Jan. 25, 2011 (GLOBE NEWSWIRE) -- Attorney Advertising --
The law firm of Harwood Feffer LLP is investigating possible breaches of fiduciary duty by its Board of Directors of the refusal by Citadel Broadcasting ("Citadel") to entertain a buyout offer from Cumulus Media ("Cumulus").
Citadel is the nation's third-largest radio broadcasting company; it owns and operates 166 FM and 59 AM stations in more than 50 markets. Its Citadel Media unit provides radio programming for approximately 4,000 station affiliates.
In early November 2010, Citadel received the first of two offers from Cumulus, a competitor that specializes in radio stations in midsize markets. The offer, at $31 a share in cash and stock, was rejected by the Board even though the bid represented a then 16 percent premium to the then recent average price of Citadel's stock. Cumulus's offer was appealing because it would have provided much-desired liquidity for Citadel shareholders. Indeed, the Company's Class A stock has been so illiquid it has traded approximately 10,000 shares in the last month, and only approximately 1,000 since January 6, 2011.
Almost immediately after the offer, Citadel issued $400 million in debt that appears to be the equivalent of a poison pill anti-takeover device. While Citadel denies that the debt issue was intended to make a takeover more expensive, it contained a provision requiring the debt to be redeemed, at a cost of $31 million, if the Company changed hands in the near future. Citadel continues to refuse to engage with Cumulus.
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
The Harwood Feffer LLP logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=454
If you own Citadel common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
Samuel K. Rosen, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
(212) 935-7400
Email: rharwood@hfesq.com
srosen@jfesq.com
Website: http://www.hfesq.com
Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.