Metromedia International Group (OTC:MTRM) shares jumped $0.10, or 5.88%, to $1.80 today after Fursa Alternative Strategies' Mickey Harley expressed concerns over the company's proposed $1.80/share buyout offer and made his own $2.05/share proposal on the same terms. Shareholders applauded the move today but shares are currently at the original buyout price, leaving 14% on the table.

The planned merger is between Metromedia and an investor consortium called CaucusCom Mergerco, funded by Capital Management & Investment and others. Unfortunately for Fursa, these investors also have a $7.5 million breakup fee along with 20% of the net fees if the merger deal falls through and a third party acquires the company. This may cause some problems; however, it is likely that the board will at least consider the alternative proposal.

Metromedia is a diversified holding company that focuses on the Georgian telecom market. The interest in the companies lies predominantly in its 50.1% stake in MagtiCom - a mobile phone operator in the Republic of Georgia.
However, the company also has a large stake in PeterCom - a mobile phone operator in Russia. It also owns interests in Telecom Georgia and Telenet - two other Georgian companies.

In the end, this is good news for shareholders as it cannot hurt them. The current buyout offer stands at $1.80/share, so risky investors may find it worthwhile to purchase shares that are currently trading at that price in hopes for a chance at $2.05/share - a 14% premium. And this makes MTRM a stock worth watching!

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