Fursa asks Metromedia for access to complete due diligence; CaucusCom tender offer continues

By Lisa Kerner

Charlotte, N.C., Aug. 6 - Fursa Alternative Strategies LLC head Mickey F. Harley reiterated his belief that Fursa's proposal for Metromedia International Group, Inc. could be superior and asked for access to information to complete due diligence.

On Friday, Metromedia determined that the alternative proposal from Fursa could not reasonably be expected to lead to a superior proposal under its current merger agreement with CaucusCom Ventures LP and CaucusCom Mergerco Corp. The company had doubts about Fursa's ability to fund the cash portion of its proposed $69 million equity commitment and to complete the proposed $150 million debt financing.

Harley, in a letter to Metromedia chairman and president Mark S. Hauf, said Fursa's $2.05-per-share offer price is a 14% premium over the offer in the current merger agreement. Harley also reaffirmed Fursa's ability to complete the financing. The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

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

Fursa owns 7,907,610 shares, or about 7.7%, of the Charlotte, N.C., communications company.

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