Citadel pulls ahead on ABC Radio deal: sources

PHILADELPHIA (Reuters) - Citadel Broadcasting Corp., after trumping two rivals in a bid for Walt Disney Co.'s ABC Radio unit, is now in exclusive negotiations with Disney on a deal that could reach nearly $3 billion, according to sources close to the talks.

Locally the deal would impact stations KABC AM 790, KLOS FM 95.5, Radio Disney AM 1150 and ESPN Radio AM 710. ABC's television operations would not be part of the deal.

Citadel, a radio broadcaster largely owned by private equity firm Forstmann Little & Co., has been an active but publicly quiet presence in the ABC Radio negotiations for months, sources said.

Radio rival Entercom Communications Corp. and private equity firm Kohlberg Kravis Roberts & Co. were thought to be strong contenders for the assets until recent days, when sources said Citadel began maneuvering to push aside its rivals.

Citadel and Disney will negotiate details on a deal over the next few weeks.