Report: Bidders To Sweeten Clear Channel Offer
April 16, 2007 at 5:47 AM (PT)
The buyout groups bidding for CLEAR CHANNEL COMMUNICATIONS have suggested sweetening their offer by allowing shareholders to co-invest in the firm as a key vote on the deal approaches, a source close to the situation told REUTERS on SUNDAY.
The bidders have suggested a broad package of adjustments to improve the $19 billion offer, the main change being to allow existing shareholders to take a stake in the group following the buyout, a strategy known as a stub.
The options were outlined in a letter sent by the bidders to CLEAR CHANNEL, the source said. Discussions between the bidders and CLEAR CHANNEL about the various options are ongoing, the source said.
Buyout firms THOMAS H. LEE and BAIN CAPITAL's $37.60-a-share offer has run into resistance from some shareholders and proxy advisory firms, who argue that the deal undervalues the company.