Print | Share | Reprint

Bluestone joins Attiva in pushing SBS to weigh spinoff

by Richard Morgan | Published May 30, 2012 at 2:20 PM

A regulatory filing Tuesday, May 29, revealed that Bluestone Financial Ltd. has joined Attiva Capital Partners Ltd. in the latter's continuing push for Spanish Broadcasting System Inc. to consider a spinoff of its Mega TV and Mega Films franchises.

The filing, which represented 7.75% of SBS's voting shares, suggested that proceeds from the sale of a majority interest in Mega be used "to reduce high yield debt, strengthen its balance sheet and eventually return some capital to its shareholders."

Attiva and Bluestone also advised Coconut Grove, Fla.-based SBS to take advantage of the company's historically low stock price "not by awarding more options" to management but "by buying the stock in the open market."

SBS, which is dominated by 21 radio stations, bills itself as "the largest publicly traded Hispanic-controlled media group."

Attiva and Bluestone emphasized the phrase "publicly traded" in their filing and noted its inconsistency with the "Raul Alarcon Company" designation that sometimes appears in reference to SBS and in deference to its chairman, president and CEO.

Tuesday's filing followed a similar plea by Attiva on Aug. 30 that SBS should partner with a media conglomerate to give its Mega operations "a competitive advantage" against rivals such as Comcast Corp.'s Telemundo and the partnership of Univision Communications Inc. and Grupo Televisa SA.

Share:

Telecom, Media & Technology

Bluestone joins Attiva in pushing SBS to weigh spinoff

Free preview

Meet the journalists

Richard Morgan

Editor at Large: Media, Entertainment & Telecommunications

Movers & Shakers

Video

Goode Partners feasts on IPO returns

Sectors