Cumulus Confirms Citadel Bid

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Cumulus Media Inc. today confirmed that on November 29, 2010, it made a proposal to the Board of Directors of Citadel Broadcasting Corporation to acquire all of the outstanding equity of Citadel for $31 per share.

The proposed transaction values Citadel as an enterprise at approximately $2.1 Billion. The merger would have allowed the Citadel shareholders to elect to receive cash or Cumulus stock, with a total of up to $1 Billion of cash to be paid, representing about 71% of the consideration to Citadel shareholders.

On December 6, 2010, Citadel informed Cumulus that "the board of directors of [Citadel] rejected this proposal as not being in the best interests of [Citadel's] shareholders."

On December 16, 2010, Cumulus delivered a letter to Citadel's Board of Directors reiterating its offer and its desire to reach agreement on a transaction that would deliver superior value and substantial liquidity to Citadel's shareholders.

Cumulus Chairman & CEO, Lew Dickey, commented, "This offer continues to represent a superior alternative in value, liquidity and potential growth for the former secured creditors of Citadel who, post-bankruptcy, are now the owners of the company."

For the full text of the letter issued by Cumulus to Citadel's Board, click here.