P.M. BRIEFING : McCaw-LIN Talks Take New Turn

McCaw Cellular Communications’ bid for LIN Broadcasting Corp. took an unexpected turn today when the two companies issued a joint statement saying they are negotiating a deal in which McCaw would purchase LIN for $127.50 per share in stock and cash.

The announcement was unexpected since earlier in the week both companies said weekend talks failed to produce a satisfactory agreement. On Monday, McCaw reduced its initial tender offer of $120 a share to $110, a move described as a “cynical tactical maneuver” by a LIN spokesman.

But today the companies said they were “engaged in continuing negotiations regarding a possible acquisition of LIN in which each share of LIN common stock would be exchanged for cash and Class A common stock of McCaw having an aggregate value of $127.50.” The cash portion would be at least $110 per share.