Report: Some Citadel Holders Sue to Block Merger

RADIO ONLINE | Monday, May 9, 2011 | 5:58pm CT

The Associated Press is reporting that some Citadel Broadcasting shareholders have filed suit against the company's merger with Cumulus Media, which is offering $37 per share in cash and stock. The suing holders claim they aren't getting enough money for each share, which is only 9% above Citadel's closing price in March.

In the suit filed last Friday in Delaware, the unhappy shareholders say the company is worth more, claiming the average offer price for broadcasters in the past five years has been 80% above its stock price.

If completed, the deal would combine the two radio broadcasters to include ownership of 572 stations.