Clear Channel Accepts Smaller Takeover Bid

[Elspeth]

Source: New York Times

Clear Channel Communications agreed on Tuesday to a revised $17.9 billion takeover by two private equity firms after settling a long and often acrimonious dispute with the six banks that agreed to finance the deal.

The deal heads off what would likely have been two rancorous legal battles over the buyout, one of the last holdovers from the recent private equity boom. The settlement arrives after nearly a week of negotiations involving the company, its proposed buyers and their banks.

As expected, Clear Channel, the nation’s largest radio broadcaster, agreed to sell itself to Bain Capital and THL Partners for $36 a share, down from the $39.20 a share agreed to nearly a year ago. Many aspects of the original deal remain, including so-called stub equity that allows investors to roll over some of their holdings into a stake in the newly private company.

Under the terms of the settlement, Clear Channel will pay a slightly higher interest rate on loans provided by the banks — Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, the Royal Bank of Scotland and Wachovia — which will cut into the buyout firms’ profits.



Read more: http://www.nytimes.com/2008/05/14/business/media/14clear.html?ref=business

[Bozita]

1. Will Mitt Romney be America's Berlusconi?

Mittens is still with Bain Capital, isn't he?

[Elspeth]

2. Lordy, there's a thought.

...

[lib2DaBone]

3. Isn't Bain Capital...

part of the Carlyle Group? I could be mistaken. Just thinking about going from Clear Channel's 24 hour-a-day Rush Limbaugh Marathon to who knows what? But then, what could be worse than Limbaugh, O'Reilly, Laura Ingraham and Glen Beck 24 hours a day? AHHHHHHH... "Waterboard" me......

[sasquatch]

4. Who the hell owns THL Partners?

[coffeenap]

5. Here's a link to the listed officers and managers:

http://www.thlee.com/ourTeam/index.html

At least one is formerly with Bain.