Radio One says to sell Los Angeles-based station

(Reuters) - Radio One Inc (ROIA.O: Quote, Profile, Research) said it agreed to sell KRBV - FM, its radio station in Los Angeles, to broadcast and communications company Bonneville International for $137.5 million.

Radio One also said its board authorized the buy back of up to $150 million of its Class A and Class D common stock through December 31, 2009.

Shares of the company rose more than 59 percent to $1.75 in afternoon trade on Nasdaq.

The KRBV - FM deal is expected to close during the second quarter of 2008, the broadcaster said in a statement.

Radio One expects to use the proceeds from this transaction to reduce its leverage, accelerate its Internet strategy and re-commence a limited buy-back of its securities, Chief Executive Alfred Liggins said.

Rothschild Inc acted as financial advisor to Radio One for the transaction.

(Reporting by Purwa Naveen Raman in Bangalore; Editing by Jarshad Kakkrakandy)