Westinghouse to buy Infinity

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In a deal that will create a radio station juggernaut, Westinghouse Electric Corp. is buying Infinity Broadcasting Corp. The combined revenues of the Westinghouse/CBS stations and the Infinity group are about $1 billion, or 8% of the $13 billion radio market. The combined group will include 83 stations in 16 markets; 69 in the top 10 markets. The deal, which must be approved by the Federal Communications Commission, calls for Infinity shareholders to receive 1.71 shares of Westinghouse stock for every share of Infinity stock. The purchase price is valued at $3.9 billion, with Westinghouse picking up another $1 billion in Infinity debt. To satisfy current station rules, the combined company will have to divest itself of three FM stations in Dallas and one AM and one FM outlet in Chicago. When asked if he has problems with the outspoken Howard Stern, whose past rantings have brought government fines to Infinity, Michael Jordan, chairman-CEO of Westinghouse, said, "As long as Howard follows the rules, that's fine."

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