Report: CC Could Make Announcement Regarding Sale On Wednesday
November 14, 2006 at 4:30 PM (PT)
CNBC is reporting that an announcement on CLEAR CHANNEL COMMUNICATIONS' potential sale could be made before the stock market opens tomorrow (11/15). Sources say the company's board today was mulling the bids submitted by a consortium made up of PROVIDENCE EQUITY PARTNERS, BLACKSTONE and KKR and a consortium comprising BAIN CAPITAL and THOMAS H. LEE PARTNERS, REUTERS reports; TEXAS PACIFIC GROUP, which had previously been involved in the second consortium, was reportedly not part of the bid.
Idea For CC Sale Came From College Classmate
While no terms or details are yet available for the reported two competing bids, THE NEW YORK TIMES reports that the genesis for the potential sale began more than six months ago, when PAUL SALEM of PROVIDENCE EQUITY PARTNERS made a pitch to RANDALL MAYS, his old classmate from HARVARD BUSINESS SCHOOL.
SALEM, Sr. Managing Dir. of the investment firm, proposed that the MAYS family consider a leveraged buyout of the company it had built. Yesterday (11/13), MAYS officially took SALEM up on his offer, fielding final bids for CLEAR CHANNEL.
The offers, expected to be worth $36 to $37 a share, would value CLEAR CHANNEL at about $18 billion and reap more than $1 billion for the MAYS family.