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Infinity Broadcasting Agrees to Revised $12.5-Billion Stock Offer by Viacom

November 01, 2000|From Reuters

NEW YORK — Media giant Viacom Inc. on Tuesday said Infinity Broadcasting Corp. agreed to a revised stock offer worth about $12.5 billion that would give Viacom ownership of the Infinity shares it doesn't already own.

The definitive agreement calls for Viacom to exchange 0.592 of its Class B shares for each of Infinity's shares, none of which is owned by Viacom. Though the new offer represents an increase from Viacom's August offer of 0.564 of a share, its dollar value is lower than the $15.2 billion offered then.

Based on Viacom's Monday Class B share closing price of $55.56, the deal values each share of Infinity at $32.89, down from the about $40 each was worth under Viacom's offer in August. Viacom's Class B shares closed at $71 on Aug. 14, the day before its offer was announced. Shares of Infinity closed at $30.50 on Monday. Viacom stock was up $1.31 to close at $56.88, and Infinity rose $2.75 to close at $33.25 on Tuesday on the New York Stock Exchange.

The merger is expected to be completed in the first quarter of 2001.

The deal is the most recent move in a twisted ownership history for Infinity, which operates 166 radio stations and has been through several public and private ownership structures since first going public in 1986. In recent years, Infinity has been an aggressive buyer of radio stations and outdoor advertising assets.

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