The Work

December 19, 2010 6:28 PM

Radio Throwdown: Kirkland, Weil Behind Citadel on Cumulus Bids

Posted by Brian Baxter

Citadel Broadcasting, the nation's third-largest radio station operator, has retained the services of two top Am Law 100 firms as it deals with repeated takeover offers from Cumulus Media, the second-largest radio station ownership group in the U.S.

The New York Times reported in early December that Las Vegas-based Citadel had rejected two unsolicited offers by Cumulus. On Friday, Cumulus announced it had bid $2.1 billion for Citadel, which promptly rejected the offer.

Howard Chatzinoff, cochair of the M&A practice at Weil, Gotshal & Manges, is advising Citadel along with securities litigation cochair Gregory Danilow. Weil is working with Kirkland & Ellis corporate partner Joshua Korff and restructuring partner Jonathan Henes, who are also providing outside counsel to the company as it resists repeated entreaties by Cumulus.

Kirkland advised Citadel a year ago when it filed for Chapter 11 protection from creditors. Citadel won bankruptcy court approval for a reorganization plan in May of this year and emerged from Chapter 11 proceedings the following month. (Jacquelyn Orr serves as Citadel's general counsel; the company's FCC counsel is Lerman Senter in Washington, D.C.)

Citadel has called the offer it rejected by Atlanta-based Cumulus "neither credible nor at an appropriate valuation," Reuters reports. The company also criticized a statement issued on Friday by R2 Investments, which claims to be one of Citadel's largest shareholders. The statement by R2 said Citadel's rejection of Cumulus was "exhibiting an utter disregard for shareholders' interests."

Jones Day is advising Cumulus on its bid for Citadel. Richard Denning, general counsel for Cumulus, did not respond to a request for comment on the names of the lead lawyers from the firm serving as counsel to the company.

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