DOJ Nixes Hispanic Bid

DOJ Nixes Hispanic Bid
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Hispanic Broadcasting Corp. says the Justice Department won't allow HBC to pick up Clear Channel stations in Denver, Austin and Phoenix. HBC had been the prevailing bidder for the three stations at a proposed $127 million purchase price.
Clear Channel and AMFM must divest several stations to comply with ownership requirements in several markets and complete their merger. In such cases, the DOJ will not allow the seller to have any financial interests in the buyer. Clear Channel has a 26% passive ownership stake in HBC, and that's why its bid is disqualified.
McHenry Tichenor Jr., HBC CEO said he was disappointed and had hoped the DOJ would create a new rule for this case and apply it retroactively.
Leslie Stimson

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