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Cumulus Reiterates $2.1 Billion Offer for Citadel

Suitor has been spurned so far

Cumulus Media says yes, it wants Citadel, even though Citadel has said no.

Cumulus Media confirmed that it recently offered to buy the equity of Citadel for $31 per share, for a deal valued at $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,” it said in a summary.

It says Citadel’s board declined the offer on Dec. 6 but that on Dec. 16, “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.”

It quoted Cumulus Chairman & CEO Lew Dickey saying, “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.”

The letter from Cumulus told Citadel, “We do not understand why you have been unwilling to engage with us to explore such a transaction and to consider its benefits to Citadel and its shareholders.”