Spanish Bcstg. System (SBS) sued Clear Channel (CC) and Hispanic ...
Spanish Bcstg. System (SBS) sued Clear Channel (CC) and Hispanic Bcstg. Corp. in U.S. Dist. Court, Miami, saying they had violated antitrust laws by interfering with SBS’s ability to raise capital, impugning its reputation and making acquisitions more difficult.…
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SBS said their ultimate goal was to acquire SBS. Among charges: (1) CC CFO Randall Mays tried to convince underwriters to withdraw from SBS IPO. (2) CC and Hispanic tried to influence analysts not to cover SBS stock and tried to induce institutional investors not to buy it. (3) CC and Hispanic engaged in bidding wars for radio stations just to increase SBS acquisition costs and interfered with contracts. (4) CC induced Katz (owned by CC) to breach its contract as SBS’s national sales representative. (5) CC “parked” stations it owned with other companies to circumvent FCC ownership limits. (6) CC used market power in outdoor displays, advertising and venue promotion to benefit CC and Hispanic, harming SBS. SBS attorney in case is David Boies.