NEW YORK, April 12 /PRNewswire-FirstCall/ -- Today Interep (IREP.PK) responded to Oaktree Capital Management regarding Interep's good faith in following the parties' November 10, 2005 Letter of Intent.
The Letter of Intent obligated Interep to negotiate with Oaktree Capital Management in good faith, not to accept an unsatisfactory deal. Since the Letter of Intent is non-binding, Interep has the right and the obligation to look at possible alternatives to Oaktree's deal.
Despite Oaktree's statements to the contrary, Interep and its Board of Directors have acted in good faith throughout their negotiations with Oaktree. Over the past four months, Interep has been confronted by significant issues relating to the terms and conditions of the transaction, many raised by Oaktree itself. Some of these issues have not been resolved.
The Board's duty is to act in the best interests of all of Interep's shareholders -- and it has done so. While Oaktree's offer of $1.10 per share does represent a premium over the current market share price, the Board will continue to evaluate the intrinsic value of the company with a view to determine a fair valuation. This requires the Board to continue to explore alternatives that could result in greater value for the company's shareholders and employees.
For these reasons and others, Oaktree's claim -- that a failure to do a deal with them will result in irreparable harm to Interep's shareholders -- is simply untrue. The Board believes that it has carried out its fiduciary duties to the shareholders and that Oaktree does not have valid claims against the Board or the Company.
About Interep:
Interep (IREP.PK) is the nation's largest independent advertising sales and marketing company specializing in radio, the Internet, television and complementary media, with offices in 17 cities. Interep is the parent company to the following radio representation firms: ABC Radio Sales, D&R Radio, CBS Radio Sales, McGavren Guild Radio, SBS/Interep and Susquehanna Radio Sales. Interep is also parent to Azteca America Spot Television Sales and Interep Interactive, including Winstar Interactive, the place for Internet brands. Interep divisions benefiting our clients and customers include our "unwired" Network Division; Interep Innovations, our business development division, including the Interep Marketing Group (IMG) and Promotion Marketing; The Event Shop; and Morrison and Abraham, a sales consulting firm. For more information, visit the company's website at http://www.interep.com/.
Contact: Michele Skettino
Phone: #212-916-0536
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