Examples of ABC Radio Holdings in a sentence
Suite 400 Las Vegas, Nevada 89128 Ladies and gentlemen: We have acted as tax counsel to Citadel Broadcasting Corporation, a Delaware corporation (“Citadel”), in connection with the merger (the “Merger”) of Alphabet Acquisition Corp., a Delaware corporation and a direct wholly-owned subsidiary of Citadel (“Alphabet Acquisition”), with and into ABC Radio Holdings, Inc.
Disney stockholders will not be required to pay for the shares of ABC Radio Holdings common stock distributed in the spin-off or the shares of Citadel common stock issued in the merger.
Disney and ABC Radio Holdings have received tax opinions from Dewey Ballantine LLP, and Citadel has received a tax opinion from Kirkland & Ellis LLP, regarding certain aspects of the spin-off, the merger and the special distribution.
Disney stockholders will receive cash from the distribution agent in lieu of any fractional shares of ABC Radio Holdings common stock or Citadel common stock to which such stockholder would otherwise be entitled.
In the Disney IRS ruling, the IRS has ruled, among other things, that stockholders of Disney generally will not recognize any gain or loss for United States federal income tax purposes upon the receipt of ABC Radio Holdings common stock in the spin-off.
The Merger will be preceded by (1) an internal restructuring by Disney (the “Disney Restructuring”), (2) the making by Citadel to its shareholders of a special distribution (the “Special Distribution”) and (3) the pro-rata distribution of all of the stock of ABC Radio Holdings by Disney to its shareholders (the “Separation”), pursuant to the Separation Agreement between Disney and ABC Radio Holdings dated as of February 6, 2006 and amended as of November 19, 2006 (the “Separation Agreement”).
A: First, in the separation, Disney will separate and consolidate the businesses that comprise the ABC Radio Business, through an internal restructuring, under ABC Radio Holdings, currently an indirect, wholly-owned subsidiary of Disney.
Third, immediately after the spin-off, Alphabet Acquisition will merge with and into ABC Radio Holdings, which will become a direct, wholly-owned subsidiary of Citadel, and the shares of ABC Radio Holdings common stock held by Disney stockholders will be converted into an equal number of shares of Citadel common stock in the merger.
We refer to the private letter ruling that Disney has received as the Disney IRS ruling, the letter we expect ABC Radio Holdings to receive as the ABC IRS ruling, and both letters together as the IRS rulings.
Disney (or one of its affiliates) also will retain approximately $1.1 billion to $1.35 billion in cash from the proceeds of indebtedness, which we refer to as the ABC Radio Holdings debt, that ABC Radio Holdings is expected to incur in connection with the internal restructuring and prior to the spin-off.