Vegas firm’s shares fall

Thursday, Jan. 29, 2004 | 11:24 a.m.

Shares of Citadel Broadcasting Corp. of Las Vegas, the sixth-largest U.S. radio broadcaster by revenue, Wednesday posted their biggest decline since a July initial public offering after majority owner Forstmann Little & Co. said it plans to sell one-fifth of its stake for about $377 million.

Citadel said in a statement that it filed to sell 28 million shares -- 8 million in newly issued shares and 20 million shares from investors including Forstmann Little, which has owned the broadcaster since a $2 billion leveraged buyout in June 2001. The transaction will reduce Forstmann Little's stake to 58 percent from 78 percent.

Citadel, whose stock dropped by 7.1 percent to $18.85, owns 150 FM and 63 AM radio stations in 44 markets in 25 states.

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