Clear Channel Affirms Settlement Talks With Banks
May 12, 2008 at 12:21 PM (PT)
A settlement in the CLEAR CHANNEL lawsuit case appears imminent, according to the WALL STREET JOURNAL. And, CLEAR CHANNEL has gone as far as confirming that settlement discussions are continuing, and that debt commitments in connection with the proposed acquisition of CLEAR CHANNEL by CC MEDIA HOLDINGS, INC. is postponed until 9a (CT).
CLEAR CHANNEL noted: "No settlement has been reached by the parties and there can be no assurance that any settlement will be reached. CLEAR CHANNEL will not comment on any potential settlement terms or the likelihood that a settlement agreement will be reached."
If all goes well, it looks like the banks -- CITIGROUP INC., DEUTSCHE BANK AG, MORGAN STANLEY, CREDIT SUISSE GROUP, ROYAL BANK OF SCOTLAND GROUP PLC and WACHOVIA CORP -- will agree to fund the $19.4 billion private-equity buyout of the CLEAR CHANNEL by THOMAS H. LEE PARTNERS and BAIN CAPITAL LLC, at $36 a share, lowering the deal value to $18 billion. The original deal was set at $39.20/share.
CCU stock has gotten a lift out of today's news. Click here to see the pricing.
NEW YORK Supreme Court Justice HELEN E. FREEDMAN had adjourned the NEW YORK CLEAR CHANNEL buyout trial until TUESDAY morning at 10:45a (ET). The adjournment came without explanation by the court, although speculation centered on continuing negotiations between the parties, which look like they will result in a new price and a deal that will close subject to shareholder approval.
More details, soon.