STEVENSON, Md.--(BUSINESS WIRE)--The law firm of Brower Piven, A Professional Corporation, has commenced an investigation into possible breaches of fiduciary duty to current shareholders of Citadel Broadcasting Corporation (“Citadel”) (OTC: CDELA.PK, CDELB.PK, & CDDGW.PK) and other violations of state law by the Board of Directors of Citadel relating to the proposed acquisition of the company by Cumulus Media. Inc. (“Cumulus”) (NASDAQ: CMLS).
On March 10, 2011, Citadel announced that it has entered into a Definitive Merger Agreement for Citadel to be acquired by Cumulus. Under the terms of the agreement, Citadel stockholders will have the right to elect to receive $37.00 in cash or 8.525 shares of Cumulus Class A Common Stock for each share of Citadel Common Stock, subject to proration. Holders of warrants to purchase Citadel Class B Common Stock will have the right to elect to have their warrants adjusted to cover the same cash and stock consideration, subject to proration. Based on the closing price of the Cumulus Class A Common Stock on March 9, 2010 of $5.10, the transaction values Citadel as an enterprise at approximately $2.5 billion. However, Citadel has been performing well after emerging from bankruptcy in December of 2009, and reporting positive third quarter earnings for 2010.
If you currently own shares of Citadel and would like to learn more about the investigation being conducted by Brower Piven, you may e-mail or call Brower Piven, who will, without obligation or cost to you, attempt to answer your questions. You may contact Brower Piven by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and other class action cases of over 60 years.