Clear Channel Still Evaluating Bids
November 15, 2006 at 4:33 PM (PT)
Sources tell REUTERS that CLEAR CHANNEL COMMUNICATIONS' board of directors was still mulling over takeover offers this afternoon (11/15) and that while a decision could be made by tomorrow (11/16), it may be delayed if the company seeks more information from the bidders or asks for a new round of offers. It's also possible that CC could reject the bids outright.
CC reportedly received bids worth more than $36 a share from a consortium comprising PROVIDENCE EQUITY PARTNERS, THE BLACKSTONE GROUP and KOHLBERG KRAVIS ROBERTS and a consortium consisting of BAIN CAPITAL and THOMAS H. LEE PARTNERS. In fact, the NEW YORK TIMES reports that the teams had planned to submit revised bids ahead of CLEAR CHANNEL's board meeting and that a winning offer would likely end up below $37 a share, below some analysts' expectations of as high as $40 a share.
"I don't think a deal will happen at $36," STIFEL, NICOLAUS & CO. analyst KIT SPRING told the TIMES. "I don't think shareholders will approve it. I think the price is too low. A price of $38 to $42 per share is a fair value.
"I think investors may be displeased at how quickly the bidding process has gone. I think a higher price can be achieved if some of the assets were sold piecemeal before a private equity buyout was considered."