Sinclair Sells Car Stake

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TV station group owner Sinclair has decided to cash out its 17.5% stake in auto dealer and leasing company Atlantic Automotive for approximately $21.5 million.

Add in the $2.5 million it has collected in dividends since making the buy in 2000, and that is about a 7.75% return on investment, the company points out.

Sinclair bought the stake because auto makers are TV station's biggest advertisers. But shareholders wanted the company to reduce some of its debt, so when the buyout offer was made, the board decided to take it and recommend reducing debt with the proceeds.

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