NBC, Citadel Propose ION Media Privatization

NBC, CITADEL PROPOSE ION MEDIA PRIVATIZATION
[SOURCE: Wall Street Journal]
NBC Universal and private-equity firm Citadel Investment Group proposed a tender offer for ION Media Networks shares that would take ION private. Under the agreement, valued at about $70.5 million, Citadel would pay $1.41 for each ION share. Shares of the network broadcaster, formerly known as Paxson Communications, climbed 40 cents, or 65%, to $1.02 as of 4 p.m. in American Stock Exchange composite trading. A successful offer would give NBC Universal and Citadel each about a 50% stake in ION, although NBC Universal wouldn't have any voting control or appoint any board members. NBC Universal currently has preferred stock in ION equal to about an 80% ownership stake if converted into common shares, but it is prohibited from exercising control over ION because of federal regulations regarding TV-station ownership.
http://online.wsj.com/article/SB116918205493881333.html?mod=todays_us_marketplace
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