Metromedia says Fursa deal not likely to be superior to CaucusCom agreement

By Lisa Kerner

Charlotte, N.C., Aug. 3 - Metromedia International Group, Inc. determined that the alternative proposal from Fursa Alternative Strategies LLC cannot reasonably be expected to lead to a superior proposal under its current merger agreement with CaucusCom Ventures LP and CaucusCom Mergerco Corp.

Fursa was notified of the Metromedia board of directors' decision by letter on Friday.

The board said it made the decision following a consultation with its outside counsel and financial advisers.

While Fursa presented a premium offer price of $2.05 per share, the board was not convinced of Fursa's ability to fund the cash portion of its proposed $69 million equity commitment, according to a company news release. In addition, the board cited a lack of "reasonable evidence" that Fursa could complete the proposed $150 million debt financing.

As previously reported, 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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