Discovery Group asks Spanish Broadcasting to consider alternatives

By Lisa Kerner

Charlotte, N.C., March 3 - Spanish Broadcasting System Inc. investors led by Discovery Equity Partners, LP and Discovery Group I, LLC outlined a number of requests in a Feb. 29 letter to the company's board of directors.

Discovery Group wants Spanish Broadcasting to form a special committee of independent directors to begin the process of evaluating three specific alternatives with the assistance of an investment bank. The alternatives are:

• A going-private transaction that would allow the company's controlling stockholder, Raul Alarcon Jr., to continue to run the company, after tendering for the public equity at a fair value;

• A sale of Spanish Broadcasting to a strategic party, which would maximize value for all shareholders; or

• Keep the company public but adopt corporate governance practices including equal shareholder voting rights among all classes of stock and splitting the chairman and chief executive officer roles.

Discovery Group's letter was included in a schedule 13D filed with the Securities and Exchange Commission.

Spanish Broadcasting is asked to reply to the shareholder's suggestions by March 12.

Discovery Group said it will consider adding to next year's proxy a proposal asking if class A shareholders support the hiring of an investment banker to explore strategic alternatives.

The investor owns some 3.99 million shares, or 9.8%, of the Chicago-based media and entertainment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.