Report: Investors Confident CC Deal Will Happen
April 23, 2008 at 6:34 AM (PT)
CLEAR CHANNEL COMMUNICATIONS' shares jumped yesterday as investors gained more confidence that the WALL STREET banks financing the $27 billion takeover by private-equity firms THL PARTNERS and BAIN CAPITAL will eventually be forced to finance the deal, writes THE NEW YORK POST. The buyout firms, which are suing six banks led by CITIGROUP and DEUTSCHE BANK, quickly rejected yesterday (NET NEWS 4/22) a call by the banks to end their lawsuit and enter into binding arbitration.
The settlement offer was seen by many CLEAR CHANNEL shareholders as a sign that the banks were trying desperately to avoid a trial.
Sources close to the company and the private-equity firms said the evidence that has been discovered in pre-trial investigations contains documents and other correspondence that could potentially damage the banks' reputations.
Shareholders are expected to pack the courtroom in NEW YORK TOMORROW for hearings on the two sides' motions for summary judgement.
Meeting In Boston?
ALL ACCESS hears that the banks are meeting THURSDAY with BAIN CAPITAL and THOMAS H. LEE in BOSTON to see if they can come to terms.
Clear Channel Announces Another Extension
In connection with CLEAR CHANNEL COMMUNICATIONS, INC.'s previously announced tender offer for its outstanding 7.65% Senior Notes due 2010 and CLEAR CHANNEL's subsidiary AMFM OPERATING INC.'s previously announced tender offer for its outstanding 8% Senior Notes due 2008, CLEAR CHANNEL announced TODAY that it has extended the date on which the tender offers are scheduled to expire from 8a ET on APRIL 25th, 2008 to 8a ET on MAY 2nd, 2008 and the consent payment deadline for the Notes from 8a ET on APRIL 25th, 2008 to 8a ET on May 2nd, 2008.