NEW YORK (Reuters) - Citadel Broadcasting Corp CDELA.PK rejected an unsolicited offer by Cumulus Media (CMLS.O) to buy the radio broadcaster for as much as $1 billion.
Cumulus Media, the second largest U.S. radio broadcaster, said on Friday it proposed to buy the company for $31 per share, or a total of up to $1 billion of cash.
Citadel said it rejected this and a previous offer by Cumulus, and called the latest offer “neither credible nor at an appropriate valuation.”
Citadel is the third largest radio broadcaster in the United States and filed for bankruptcy at the end of 2009.
The company also rejected a call by R2 Investments, which said it was one of the largest owners of Citadel’s outstanding shares, to reconsider Cumulus’ proposal.
R2 had issued a statement saying Citadel was “exhibiting an utter disregard for shareholders’ interests.”
Citadel said its recent reorganization and debt refinancing will result in a substantial reduction of annual interest costs.