CLEAR CHANNEL BUY SEES CLEAR SAILING

Federal regulators on Tuesday approved Clear Channel Communications' $15.5 billion acquisition of AMFM, a deal that creates the biggest U.S. radio station operator.

Regulators said that the two companies, which have shed scores of stations since the deal was announced in October 1999, must sell 23 more stations in 10 markets.

The Federal Communications Commission said it approved the purchase after the two agreed to divest the radio stations to either third-party buyers or to an insulated trust.

The U.S. Justice Department, which reviews potential competition and antitrust concerns, had approved the merger July 20 on the condition that the two companies divest 99 stations in 27 markets. In total, 122 stations will be sold in 37 markets.

When the deal was unveiled, the companies boasted that the combined company, would have operations in 32 countries including more than 800 radio stations, more than 425,000 billboard displays, 19 television stations and significant equity interests in other leading radio broadcasting and outdoor advertising entities.