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Spectrum-overlay scenarios for wideband multi-carrier (MC) systems bring new technical challenges that must be considered during the system design. In such a scenario, the receiver has to perform actions, such as channel estimation and synchronization, in the presence of possibly strong in-band interference. In this paper, we modify the iterative maximum likelihood joint frame synchronization and channel estimation algorithm for downlink MC-CDMA presented in (M. Guenach et al., 2006) to have better performance in the presence of narrowband interference. The performance of the modified algorithm is verified through computer simulations and compared with the original one.