NEW YORK (AP) - Clear Channel has settled a legal dispute with
the lenders funding its private equity buyout.
That clears the way for the San Antonio-based radio and outdoor
advertising company to finally seal the deal -- nearly two years
after it was first announced.
Under the agreement announced late yesterday, Clear Channel
shareholders would receive $36 a share. That's down from the
earlier price of $39.20 a share, and less than initial offers
rejected by some shareholders as too low.
It also reduces the deal's value from 19.5 billion dollars to
Clear Channel and its private equity buyers had sued a
consortium of six banks, accusing them of trying to undermine the
deal by changing the terms. The agreement settles the lawsuits
brought in a Texas court.
The amended buyout offer still requires shareholder approval.
Clear Channel says it now expects the deal to close by the end of
the third quarter.
On the Net:
Clear Channel Communications Inc.: http://www.clearchannel.com
(Copyright 2008 by The Associated Press. All Rights Reserved.)