Hispanic Caucus eyes Univision/HBC deal - Broadcasting & Cable

Hispanic Caucus eyes Univision/HBC deal

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The Congressional Hispanic Caucus is considering opposing Univision Communications Inc.'s
takeover of Hispanic Broadcasting Corp. Staffers for caucus chairman Rep. Silvestre
Reyes (D-Texas) confirmed last week that the merger is being examined, but they would
not say if the group is yet inclined to ask federal regulators to block the deal.
Programming diversity, as well as potential layoffs, will be factors in the
decision, the staffer said.

The Univision deal is already the subject of a $1.5 billion lawsuit by
Spanish Broadcasting System against radio-station giant Clear Channel Communications
Inc. SBS officials charged that Clear Channel wrecked negotiations that
could have led to a merger between SBS and HBC. Instead, Clear Channel
"required" HBC to enter a merger agreement with Univision. SBS also
charged that Clear Channel interfered with a public offering in 1999 and some
sale relationships.

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