Delay Seen in Univision Merger

Federal review of Univision Communication Inc.’s proposed $2-billion acquisition of the nation’s leading Spanish-language radio broadcaster has become “protracted” because of antitrust concerns, according to a Merrill Lynch & Co. report released Thursday.

Los Angeles-based Univision had predicted that it would win federal approval for its purchase of Hispanic Broadcasting Corp. of Dallas by January. However, Merrill Lynch media analyst Jessica Reif Cohen said the closing date could slip to March.

Reif wrote that although Federal Communications Commission Chairman Michael K. Powell is said to support the deal, a Justice Department review is “more uncertain” because of concerns of “undue concentration in not only local markets, but also the national marketplace.”

If the merger is approved, Univision could be required to divest some of its 31% interest in Entravision Communications Corp., a Santa Monica-based Spanish-language television, radio and billboard company that is Univision’s largest affiliate-station group, with 38 stations. Entravision also controls 55 Spanish-language radio stations and 11,400 billboards, primarily in Los Angeles and New York.

Separately, Entravision announced that John F. DeLorenzo, a media investment banking consultant and former executive of Paxson Communications Corp., would become the company’s chief financial officer in January. DeLorenzo will replace the retiring Jeanette Tully.

Univision shares rose 33 cents to $27.72, Hispanic Broadcasting rose 33 cents to $23.18, and Entravision shares fell 30 cents to $10.25. All trade on the New York Stock Exchange.