Clear Channel Communications
(CCU - Get Report)
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.
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.
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Royal Bank of Scotland
(RBS - Get Report)
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.