FTC Given More Time to Consider Nielsen/Arbitron Deal

Nielsen and Arbitron have voluntarily agreed to provide the Federal Trade Commission (FTC) with additional time to review Nielsen's proposed takeover of the radio ratings giant.

In December, Nielsen announced its intention to acquire Arbitron for around $1.26 billion, or $48 per share of common stock.

However, on January 24, a lawsuit was filed on behalf of Arbitron shareholders, claiming that the company's directors had breached their fiduciary duties by 'failing to maximize shareholder value' in the proposed sale. The complaint further alleges that Arbitron's preliminary proxy statement provides misleading information relating to the merger, and that Arbitron and Nielsen 'aided and abetted' the alleged breaches by Arbitron's directors.

The plaintiff is seeking an injunction preventing the completion of the merger and the payment of attorney's fees and expenses. Nielsen says it plans to 'defend the suit vigorously'.

Nielsen has taken a step back from these charges and re-filed the notification of its plans to buy Arbitron, in order to give the FTC more time to consider the deal. This re-filing will give the FTC until March 8 to decide on whether Nielsen can proceed with the acquisition.

Web sites: www.nielsen.com and www.arbitron.com .