Another Major Investor Appears Set Against CC Deal
April 19, 2007 at 5:46 AM (PT)
The buyout of CLEAR CHANNEL COMMUNICATIONS INC. remains anything but clear.
As reported by ALL ACCESS yesterday (NET NEWS 4/18), the deal to own the nation's largest radio broadcasting firm and billboard giant took a major turn when, on the eve of a shareholder vote, the company agreed to a sweetened, $39-a-share takeover offer from private equity investors valued at $19.5 billion.
But at least three major stakeholders in the SAN ANTONIO-based company appeared entrenched in their opposition to the deal, now rescheduled for a MAY 8 shareholder vote. Mutual fund company FIDELITY INVESTMENTS, CLEAR CHANNEL's largest shareholder, will still vote against the proposed buyout, said a person familiar with the firm's strategy.
BOSTON-based HIGHFIELDS CAPITAL MANAGEMENT, the third-biggest shareholder, also will reject the deal as undervalued, BLOOMBERG NEWS and the ASSOCIATED PRESS said.
Together, FIDELITY and HIGHFIELDS control 15% of CLEAR CHANNEL's shares. The deal requires approval by two-thirds of the shareholders, giving opponents significant clout.
Yesterday, THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM, the largest U.S. public pension fund, joined the opposition (NET NEWS 4/18), casting its 3.34 million shares against the purchase.