Emmis Communications

(EMMS) - Get Report

chief Jeff Smulyan offered to take the radio company private in a deal that values it at $567 million.

Smulyan offered $15.25 a share for the Indianapolis-based broadcaster, a 14% premium to Friday's closing price. The deal puts an enterprise value, reflecting debt and preferred stock in addition to equity, of $1.4 billion on Emmis. Smulyan owns 17% of Emmis but because of a provision in the company's charter concerning his supervoting stock, he will hold 67% voting power on any competing deal for Emmis.

Emmis' board named a special panel to consider the proposal. Smulyan is backed by Blackstone, Bank of America and Deutsche Bank.

Emmis also agreed to sell its WKCF-TV station in Orlando, Fla., and its KKFR-FM radio station in Phoenix for a total of $295 million.

Hearst-Argyle

( HTV) will buy the Orlando station and Bonneville Holdings the Phoenix operation.