WILMINGTON, Del. (AP) - Some Citadel Broadcasting shareholders are challenging the company's planned purchase by Cumulus Media, saying they aren't getting enough money from the deal.
The deal would unite two of the country's largest radio station owners and give Cumulus Media Inc. ownership of 572 stations.
Cumulus is offering $37 per share in cash and stock. That's less than 9 percent above Citadel's closing price the day before the deal was announced in March. In a lawsuit filed Friday in Delaware, shareholders say the company should have held out for more. The lawsuit claims the average offer price for a radio company in the past five years has been 80 percent above the stock price.
Citadel, which is based in Las Vegas, previously rejected a $31-per-share offer from Atlanta-based Cumulus.
Citadel declined comment.