ATLANTA (AP) - Cumulus Media, the second-largest US radio company, says it has agreed to be bought by an investor group led by Chief Executive Lewis Dickey and Merrill Lynch Private Equity for more than 507 million dollars.
Under terms of the deal, shareholders will receive eleven dollars, 75 cents a share, a premium of 40 percent over the stock's closing price Friday.
Cumulus puts the total value of the deal at one-point-three billion, including debt.
The news sent Cumulus shares soaring 37 percent to a new 52-week high.
The buyers anticipate closing the transaction in early 2008, pending regulatory and other customary conditions.
The nation's largest radio company, Clear Channel Communications, agreed earlier this year to be taken private in a 19-point-six billion dollar buyout.
(Copyright 2007 by The Associated Press. All Rights Reserved.)