Clear Channel Inches Toward Settlement
May 13, 2008
Thomas H. Lee Partners and Bain Capital Partners are involved in settlement talks with the bank group that had committed to help finance their $20 billion buyout of Clear Channel Communications, according to the San Antonio radio station operator.
Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, Royal Bank of Scotland and Wachovia and the pair of Boston private equity firms are reported to be re-negotiating the deal’s price tag downward from $39.20 a share to $36 per share. New settlement talks averted court proceedings yesterday between the banks and the private equity firms.
When Clear Channel issued its statement late Monday affirming that settlement talks were in progress, it would not comment on potential terms and noted that “no settlement has been reached by the parties and there can be no assurance that any settlement will be reached.”
On Tuesday, Clear Channel’s shares traded at $33.07 per share, or minimally above their close at $32.87 a share on Monday.
The New York Times reported Tuesday that talks began after Clear Channel shareholder Highfields Capital Management and Morgan Stanley asked the matter be settled in order to avoid uncertainties were a trial to take place.
The bank group, which had been slated to provide around $22 billion in debt financing for the deal, has said it was prepared to honor its financing obligations as set forth in the commitment letter.
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