ABC Radio Said to Be in Exclusive Takeover Talks

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

Citadel, a Las Vegas-based 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.

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