Fursa makes initial bid for Metromedia; Salford group deal still in play

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Metromedia International Group Inc. investor Fursa Alternative Strategies LLC said it can offer a "value substantially in excess" of the current $1.80-per-share offer from affiliates of Salford Georgia and Compound Capital Ltd.

Fursa proposed acquiring Metromedia for $2.05 per share of common stock under the same terms and conditions as the agreement with the Salford group, according to a schedule 13D filing with the Securities and Exchange Commission.

To fund the acquisition, Fursa said it will commit up to $69 million, which includes the rollover of the 7.9 million shares of Metromedia common stock it owns.

The shareholder asked Metromedia for access to information to perform due diligence and asked for a reply from the company within two days.

As previously reported, Metromedia agreed to be acquired by affiliates of Salford Georgia and Compound Capital for $1.80 per share in a 20-day cash tender offer set to begin by July 20. The offer is conditioned upon 63.3 million shares, or 61.3%, of Metromedia's stock being tendered in the offer. The agreement includes a $5.5 million termination fee.

Fursa beneficially owns 7,907,610 shares, or 8.4%, of the Charlotte, N.C., communications company.

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