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Forstmann Little to Buy Citadel Communications For $2 Billion

Leveraged buyout specialist

Forstmann Little

said it intends to purchase

Citadel Communications


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for $26 a share and take the company private.

The transaction is valued at $2 billion and is financed by Forstmann itself and bank financing from

J.P. Morgan Chase


Citadel is the nation's sixth-largest radio broadcasting company when ranked by revenue, according to the company's press release.

Citadel's shares closed at $17.50 Friday, but in preopen action the shares were up $6.50 to $24, a 37% rise.