Clear Channel Buyers Reach Funding Deal

It appears Clear Channel Communications (CCU Quote) 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 Quote), Morgan Stanley (MS Quote), Wachovia (WB Quote), Deutsche Bank (DB Quote), Credit Suisse (CS Quote) and the Royal Bank of Scotland (RBS Quote) 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.