It appears 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.
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 - Get Report), Morgan Stanley (MS - Get Report), Wachovia (WB - Get Report), Deutsche Bank (DB - Get Report), Credit Suisse (CS - Get Report) and the 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.