Metromedia Inc. (OTC:MTRM) shares rose marginally today after Fursa reiterated its plee that shareholders refrain from tendering their shares to an existing $1.80 per share buyout offer because they are planning on offering $2.05 per share - a 14% premium. Here is a copy of their letter:

Dear Metromedia Stockholder:

We at Fursa Alternative Strategies (“Fursa”) would like to take this opportunity to reiterate our proposal to acquire Metromedia International Group, Inc. (“Metromedia”) for $2.05 per common share. Our due diligence process is well under way, and we anticipate finishing shortly.

We strongly urge all Metromedia stockholders NOT to prematurely tender their shares, and that those who have tendered withdraw their shares until Fursa can complete the due diligence and finalize its offer. If CaucusCom Ventures L.P. and CaucusCom Mergerco Corp (“CaucusCom”) receive fewer shares than required to satisfy the Minimum Condition (as defined in the merger agreement), they are required to extend their tender offer under the terms of the merger agreement, and cannot terminate the merger agreement. Holding your shares will provide Fursa with the opportunity to complete its due diligence process, and it will provide you with the opportunity to review all information regarding Fursa’s superior $2.05 per share cash proposal.

Fursa’s proposed tender offer is superior to the offer from CaucusCom, in that Fursa’s proposal of $2.05 per common share represents a 14% premium over CaucusCom’s $1.80 per share cash offer, while keeping all other terms and conditions, including, without limitation, the same structure (tender offer with a backend merger), representations, warranties, covenants and conditions.

Furthermore, Fursa is highly confident in its ability to obtain the necessary financing for a transaction.

Thank you very much for your support. We look forward to finalizing our offer soon.

Sincerely,

William F. Harley, President

Clearly shareholders stand to benefit if Fursa is successful in either succeeding in its own $2.05 bid or forces the other bidder to up their bid. This makes MTRM a stock worth watching!

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