Spanish-language media powerhouse Univision will add radio broadcasting to its U.S. portfolio by acquiring Hispanic Broadcasting ( HSP) for $3.5 billion in stock.

News of the deal leaked in the market Tuesday afternoon. Hispanic Broadcasting closed the session at $24.45, up 70 cents, or 3%. It was up 19% to $29 on Instinet Wednesday in the premarket after the official announcement was released.

The deal marries a Spanish-language radio broadcaster with 55 stations and Univision, which already owns the leading U.S. Spanish-language television broadcast and cable networks, television station group, record labels and online portal.

The transaction calls for each Hispanic Broadcasting common share to be exchanged for 0.85 shares of Univision class A common. Univision shareholders will have about 73.5% of the combined company and Hispanic Broadcasting shareholders 26.5%.

Univision said the combined company will have pro forma 2002 net revenue of about $1.39 billion to $1.44 billion and 2002 earnings before interest, taxes, depreciation and amortization of $433 million to $469 million. Before synergies, the transaction is expected to be accretive to per-share free cash flow in the first full year immediately following the close.