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Radio Giant : The Deal

June 21, 1996|JENNIFER OLDHAM

The particulars of the proposed $3.9-billion acquisition:

Why merge?: Westinghouse said growth in advertising revenue and recent telecommunications deregulation prompted it to make the purchase. Executives said the deal would allow the company to build clusters of stations in large markets--making it more efficient and profitable.

The deal: Westinghouse would exchange 1.71 shares for each Infinity share, for a total of $3.9 billion in stock, or about $32.28 a share. It plans to issue 205 million shares to buy Infinity.

What's next?: The companies expect to complete the merger by year's end. Shareholders of both companies must approve the deal. In its antitrust review, the Justice Department may concentrate on market shares in individual cities, particularly in Dallas and Chicago, where Westinghouse would be over the federal limit of eight stations.

Impact: The deal creates a radio network about three times the size of its nearest competitor. It would also give Westinghouse a dominant position in the top 10 radio markets, where it would hold 69 stations in such cities as Los Angeles, New York and Chicago. The merger would boost Los Angeles' presence as the No. 1 radio market in terms of advertising revenue.

Source: Duncan's Radio Comments, company reports, wire reports

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