Metromedia to consider Fursa proposal, continues to recommend CaucusCom offer

By Lisa Kerner

Charlotte, N.C., Aug. 2 - Metromedia International Group, Inc. acknowledged receipt of the unsolicited proposal from Fursa Alternative Strategies LLC to acquire the company for $2.05 cash per share. Fursa owns 7,907,610 shares, or about 7.7%, of Metromedia's common stock.

While the Metromedia board of directors, along with Evercore Group, LLC, will evaluate the proposal, the board continues to recommend stockholders accept the current offer from CaucusCom, according to a company news release.

On July 18, CaucusCom Ventures LP and CaucusCom Mergerco Corp. began a $1.80-per-share cash tender offer for all of the shares of Metromedia's outstanding common stock. The tender offer expires at midnight ET on Aug. 14, unless extended.

Under Metromedia's merger agreement with CaucusCom, the company may consider unsolicited alternative offers that could lead to a superior proposal.

As previously reported, Fursa said it would commit up to $69 million to fund the acquisition, including the rollover of its Metromedia shares.

Metromedia is a Charlotte, N.C., communications company.

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