Hispanic Broadcasting Corp

Antitrust regulators told Spanish-language media giant Univision Communications Inc. they will approve its $2-billion purchase of radio broadcaster Hispanic Broadcasting Corp., as expected, if it reduces its stake in another Spanish-language firm. Univision said that to obtain Justice Department approval, it agreed to cut its 27% stake in Entravision Communications Corp. to less than 10% in six years. Univision also said it would convert its shares to a new class of nonvoting preferred stock.

Univision Communications Inc. still faces a key regulatory hurdle in its proposed $2-billion acquisition of Spanish-language radio chain Hispanic Broadcasting. Regulators at the Federal Communications Commission said in a letter this week that Univision's plan to assuage antitrust concerns by reducing its influence over another Spanish- language firm might not be enough. The FCC letter marks an unexpected holdup.

Federal antitrust regulators on Wednesday agreed to Univision Communication Inc.'s $2-billion purchase of Hispanic Broadcasting Corp. -- as long as Univision follows through on plans to curtail its influence in a related TV and radio company. The approval, which had been expected, removes a major hurdle that has held up Univision's plan to grow into a television, radio and record label behemoth commanding two-thirds of advertising dollars spent on Spanish-language media in the United States.

Univision Communications Inc. didn't see it coming. The company had faced scattered opposition in its bid to earn federal approval of its $2.3-billion acquisition of a Dallas-based radio chain. But two months after executives predicted the merger was on the verge of being approved, the deal is still sitting on regulators' desks, and the company is defending its commitment to Latinos.

The Federal Communications Commission has restarted a formal review of Univision Communications Inc.'s $2.95-billion plan to acquire Hispanic Broadcasting Corp., though a final decision probably is several weeks away. The FCC had stopped its 180-day clock at Day 178 of the review but restarted it Tuesday. Sources familiar with the matter said the expected approval is not imminent.

Spanish-language network Telemundo is asking federal regulators to delay a decision on rival Univision Communication Inc.'s proposed $3-billion purchase of Hispanic Broadcasting Corp. Executives from Telemundo and its parent network, General Electric Co.'s NBC, told Federal Communications Commission officials in meetings last week that the Univision deal would harm competition in the Spanish-language media industry. Los Angeles-based Univision owns 50 TV stations nationwide.

The Federal Communications Commission's staff has recommended that the agency approve Univision Communications Inc.'s $2.3-billion acquisition of Dallas-based Hispanic Broadcasting Corp., according to people familiar with the situation. Sources say the staff has concluded that the deal would pose no significant barriers to other broadcasters seeking to enter the Spanish-language market. The recommendation is expected to be affirmed by the commission's members as early as next week.

Wednesday's federal court ruling temporarily blocking the Federal Communications Commission's media ownership rules could further postpone the agency's long-delayed decision on Univision Communications Inc.'s $2.3-billion acquisition of Dallas-based Hispanic Broadcasting Corp., according to people familiar with the situation. At least two of the FCC's five commissioners already have voted to approve the deal.

In the face of a growing political divide over media ownership, the Federal Communications Commission on Monday voted 3 to 2 along partisan lines to allow Univision Communications Inc.'s $3.25-billion acquisition of radio chain Hispanic Broadcasting Corp. Although approval of the deal had been expected for months, the decision highlighted the increasing rancor over an issue that has roiled Congress, the courts and the commission itself.

The Securities and Exchange Commission said four people had settled charges of insider trading ahead of last year's announcement that Univision Communications Inc. was going to acquire Hispanic Broadcasting Corp. The defendants include Ernest Bieling, a former employee in Univision's corporate finance department, and Robert Hughes, a member of Hispanic Broadcasting's board of directors. Also settling were Stephen White, a broker in the Dallas office of Stephens Inc., and his brother, William.