Buyout Firm's 'No Comment' Deepens CC Deal Worries
January 29, 2008 at 3:50 PM (PT)
CLEAR CHANNEL COMMUNICATIONS shares are under pressure again TODAY after an executive from one of the firms buying the company declined to comment about the deal, reports CNN MONEY. ANTHONY J. DINOVI, Co-President of THOMAS H. LEE PARTNERS, was surrounded by anxious investors after he participated in a private-equity conference in MANHATTAN. DINOVI said he couldn't comment on the CLEAR CHANNEL deal, or any issues involving a public company.
The "no comment" sparked concern among investors already anxious about the deal valued at $19.5 billion, or $39.20 a share. The failure of several buyouts, most recently a sale of ALLIANCE DATA SYSTEMS CORP., has sparked fears the CLEAR CHANNEL deal may be next to fail or be reworked.
CLEAR CHANNEL stock took another beating TODAY (1/29), off 7.16%, losing 2.25 to close at $29.17, now more than $10/share under the deal price.
A representative for THL PARTNERS wasn't immediately available to further discuss DINOVI's remarks.
DINOVI's no comment was viewed negatively following more forthcoming recent remarks from his colleague SCOTT SPERLING. The THL PARTNERS Co-President said last week he expected the CLEAR CHANNEL sale to close in the first quarter, and he expressed confidence banks would honor their financing commitments for the deal, according to BLOOMBERG NEWS.
DONOVI told DOW JONES Newswires TODAY not to read anything positive or negative into his lack of comments, but investors are apparently making up their own minds.
CLEAR CHANNEL declined to comment. A representative for BAIN CAPITAL also declined to comment.
No Earnings Conference Call
CLEAR CHANNEL COMMUNICATIONS and CLEAR CHANNEL OUTDOOR will release year-end/fourth quarter 2007 financial results after the market close on THURSDAY, FEBRUARY 14th, at approximately 4p (ET).
The companies will not be hosting a teleconference or webcast as a result of the CLEAR CHANNEL COMMUNICATIONS, Inc. proposed merger transaction that was approved by CCU shareholders on SEPTEMBER 25, 2007, which is still expected to close in Q1 2008. It's got the FCC's OK and still awaits other regulatory approval and closing conditions.