Major Proxy Advisor Recommends Approval Of Clear Channel Deal
September 19, 2007 at 5:23 AM (PT)
INSTITUTIONAL SHAREHOLDER SERVICES, the influential proxy advisory firm, has recommended to shareholders that they vote to approve the buyout of CLEAR CHANNEL COMMUNICATIONS. The advisory represents a change by ISS, which previously opposed the earlier BAIN CAPITAL PARTNERS/THOMAS H. LEE PARTNERS offer of $37.60/share, later raised to $39 and then $39.20/share. A vote is scheduled for SEPTEMBER 25 and requires approval from two-thirds of shareholders.
"Since our last analysis, the company's radio business has performed largely in line with expectations," said ISS in its latest report. "However, the median trading multiples of both the radio and outdoor peer groups have contracted. Moreover, the ongoing credit crunch has likely taken away the punch bowl from the jumbo LBO party at least for the medium term."