Clear Channel Buyers Reach Funding Deal
It appears Clear Channel Communications (CCU) shareholders won't get as much as they were promised by the two firms looking to take the company private, but at least they're going to get a deal.
CNBC reported late Tuesday that private-equity companies Thomas H. Lee Partners and Bain Capital have agreed to a new pact with a group of banks that had initially balked at fully funding the deal, settling on a purchase price of $18 billion, or $36 a share. That compares to the earlier buyout price that was set at $39.20 a share.
Shares of Clear Channel were recently up $1.37, or 4.2%, at $34.25. The stock is now up nearly 15% over the last two sessions.
The private-equity firms had filed a lawsuit against the banks earlier this year, and a court proceeding pending in Texas that was scheduled to get underway Monday was postponed until Tuesday as settlement talks heated up.Citigroup (C), Morgan Stanley (MS), Wachovia (WB), Deutsche Bank (DB), Credit Suisse (CS) and the Royal Bank of Scotland (RBS) are in the bank group. The settlement could mark the end of a roller-coaster ride for the Clear Channel acquisition. Since the deal was initially presented in December 2006, various parties have disputed the price, the sale of certain assets and financing arrangements.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV