EarthLink Inc. (Nasdaq: ELNK) may consider bailing out of its municipal wireless business after the Atlanta-based company determined that “significant further investments” in these operations won’t maximize shareholder value. The Internet service provider, which estimates the net book value of these Wi-Fi assets at about $40 million, plans to work with the affected towns and cities as the company evaluates alternatives. Separately, Seoul-based wireless telecom concern SK Telecom Ltd. Co. (NYSE: SKM) agreed to invest up to $270 million in the Helio wireless voice and data services joint venture it formed with EarthLink in 2005.
Entravision Communications Corp. (NYSE: EVC) has decided to explore strategic alternatives for its outdoor advertising operations. The Santa Monica, Calif.-base company has retained Citi and Moelis Advisors, a division of Mercanti Securities LLC, to act as financial advisers. Entravision’s outdoor advertising businesses operate under the name Vista Media and consist of approximately 10,400 advertising faces primarily in New York and Los Angeles. Chairman and Chief Executive Officer Walter F. Ulloa said, “Our board has decided to explore strategic alternatives for our outdoor advertising operations in order to unlock the value of these assets to the benefit of our shareholders. We will also continue to build and invest in our TV and radio assets with the goal of further strengthening our position in the nation’s highest density Hispanic markets.”
A. Schulman Inc. (Nasdaq: SHLM) has agreed to consider strategic options to improve shareholder value. Terry L. Haines, the company’s chairman, president and chief executive has also decided to retire from the Akron, Ohio-based company by March 31. The supplier of plastic compounds and resins will evaluate a merger or sale of the company, plus all other possibilities. A. Schulman has also reached a compromise with shareholder Barington Capital Group L.P., which has agreed to withdraw its slate of director nominees this year. Instead, investment management firm Barington will back A. Schulman’s board nominees this year and Barington’s CEO will take a spot on the special committee evaluating strategic options. In addition, Barington will abide by some standstill provisions until the 2008 annual meeting.
Crystal International Travel Group Inc. (Nasdaq: CINTE) intends to pursue additional organization and strategic alternatives after it requested and accepted the resignation of Chief Operating Officer Fabrizzio P. Busso-Campana, who previously served as chief executive and president. The Morristown, N.J.-based company is mainly focused on maximizing the value of its IntelliFares travel product. It plans to provide an update within 30 days. For the year ended July 31, Crystal International earned $544,969 compared with the loss of $8.55 million posted a year earlier. The company attributes the increase to a one-time revenue addition of $6.03 million related to the sale of a subsidiary.