Headlines

March 25, 2008

Clear Channel stock drops 22% as sale falters...

Bloomberg | Read Full Story >

Clear Channel Communications Inc. plunged 22 percent in extended trading after the Wall Street Journal reported its $19.5 billion private-equity buyout is about to fall apart.

The buyout group, led by Thomas H. Lee Partners LP and Bain Capital Partners LLC, hasn’t been able to reach an agreement on terms with the banks financing the transaction, the newspaper said today, citing people familiar with the matter. The lenders include Citigroup Inc., Morgan Stanley, Deutsche Bank AG, Credit Suisse Group, Royal Bank of Scotland Group and Wachovia Corp.

A collapse would force private-equity firms to pay as much as $600 million in breakup fees. Clear Channel, the largest U.S. radio broadcaster, dropped to $25.51 from a $32.56 close in New York Stock Exchange composite trading. The stock has traded below the $39.20-a-share offer price because of investor concern that credit-market turmoil will destroy the deal.



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