Report: Fidelity Voting No On Clear Channel Deal
January 30, 2007 at 5:46 AM (PT)
CLEAR CHANNEL COMMUNICATIONS INC.'s biggest shareholder, FIDELITY MANAGEMENT & RESEARCH, plans to vote against the proposed $18.7 billion private equity buyout of the radio giant, a person familiar with FIDELITY's position said MONDAY.
The person told The ASSOCIATED PRESS that the mutual fund company, which owns nearly 11% of outstanding CLEAR CHANNEL shares, will cast a vote against the deal at a shareholder meeting set for MARCH 21. The person spoke on condition of anonymity because FIDELITY hasn't publicly commented on its position.
The offer of $37.60 in cash per share and the assumption of $8 billion in debt, made by an investment group led by THOMAS H. LEE PARTNERS LP and BAIN CAPITAL PARTNER LLC, requires two-thirds of shareholders to approve the deal. Those shareholders who fail to vote will be counted as "no" votes.
The offer is considered by FIDELITY to be "a significant discount to the true value of the company," said the person familiar with FIDELITY's position.