Takeover of Clear Channel is complete
A dispute over the multibillion-dollar acquisition of Clear Channel had been simmering for some time but has now been resolved: The U.S. media conglomerate reached an agreement with the private equity firms Thomas H. Lee Partners and Bain Capital, as well as the banks involved, on new terms of the deal.
A dispute over the billion-euro takeover of Clear Channel has been simmering for some time and has now been resolved: the US media group reached an agreement with the investment firms Thomas H. Lee Partners and Bain Capital as well as the banks involved on new purchase conditions. The American media company also owns the Swiss outdoor advertising company Clear Channel Outdoor. About a year ago, the parent company Clear Channel agreed to an approximately 20 billion dollar takeover by the investment companies. However, as the situation on the financial markets deteriorated dramatically as a result of the mortgage crisis, differences arose with the lenders. The holding companies filed lawsuits against the banks, including Credit Suisse, in New York and Texas.
The court proceedings have now been discontinued. The agreement stipulates that the financial investors will pay 36 dollars for each Clear Channel share instead of the 39.20 dollars stipulated in the previous agreement. This corresponds to a total price of 17.9 billion dollars. Clear Channel CEO Mark Mays said that the new agreement would be submitted to shareholders for approval in late summer. The transaction should be completed in the third quarter.
The court proceedings have now been discontinued. The agreement stipulates that the financial investors will pay 36 dollars for each Clear Channel share instead of the 39.20 dollars stipulated in the previous agreement. This corresponds to a total price of 17.9 billion dollars. Clear Channel CEO Mark Mays said that the new agreement would be submitted to shareholders for approval in late summer. The transaction should be completed in the third quarter.
