Monday, January 24, 2011

My two cents on the Citadel vs. Cumulus takeover battle

How far to New York from Atlanta boys?
Pretty simple and straight-forward at the sake of the shareholders, Citadel would rather stay put. If Cumulus aqquires Citadel, CEO Farid Suleman is in the unemployment line, most likely with several million dollars. Suleman told me when working for the group, you can't move up in companies like Cox, Cumulus and Clear Channel (then Mays owned), because you don't have the same last name as the owners.

This is what R2 Investments said about Citadel: "First they try to overpay themselves and management to the tune of $100 million. Then they put up roadblocks to a merger, which can only be a desperate attempt to keep their jobs, in our opinion".

This guy will be pulled out of his new posh offices, kicking and screaming if this deal goes down. He hates Cumulus. I mean it's like looking in a mirror. My big question is when do the shareholders get their turn and take the offer and why is a CEO (non owner of the company, Suleman owns no stock in the company, it's all in options) hold back a sale for personal purposes. The New York Times is reporting this deal could go down with Suleman at the end of a rope. No one in radio would like to see that!

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