Fursa, citing market conditions, drops bid for Metromedia

By Lisa Kerner

Charlotte, N.C., Aug. 21 - Fursa Alternative Strategies LLC took itself out of the running to acquire Metromedia International Group, Inc. by officially withdrawing its proposal on Tuesday.

The move follows Fursa's completion of due diligence. Fursa president William F. Harley, in an Aug. 21 letter to Metromedia's board, thanked the company for its assistance but said Fursa has "been unable to establish a mutually acceptable basis for a transaction that would be financeable in current market conditions. In light of this we have determined that we cannot proceed with our proposal."

Fursa, a Lynbrook, N.Y., hedge fund management firm, had sought to acquire Metromedia for $2.05 per share, according to a company news release.

On Aug. 15, CaucusCom Ventures LP extended its $1.80-per-share tender offer for all outstanding shares of Metromedia to midnight ET on Aug. 21. The tender was originally slated to end on Aug. 14. However, as of that date only 43.2% of the company's stock, or some 44,583,308 shares, had been tendered.

CaucusCom, which began its cash tender offer for Metromedia on July 18, had expressed doubts that Fursa would be able to finance its offer.

Metromedia is a Charlotte, N.C., communications company.

CaucusCom is an affiliate of Salford Georgia and Compound Capital Ltd.

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