By Ruth Mantell
Last Update: 3:03 PM ET Nov 22, 2006
SAN FRANCISCO (MarketWatch) -- Citadel Broadcasting Corp. on Wednesday said the terms of its agreement with Walt Disney Co. to combine Citadel's business with the ABC Radio business have been modified. Under the original deal, Disney would combine its 22 ABC radio stations and the ABC Radio Network with Citadel's more than 200 FM and AM stations, with Disney shareholders owning about 52% of Citadel, while Citadel shareholders controlled the remaining 48%. Disney would hold on to $1.4 billion to $1.65 billion in cash depending on the market price of Citadel at the time of closing. Under the amended agreement, the amount retained by Disney has been reduced by $300 million and Disney's shareholder's equity ownership in Citadel will be 57%. The companies now expect to close the merger after May 31.