RUMOR MILL
The banks’ settlement offer was seen by shareholders as a sign they are trying desperately to avoid a trial after the private equity firms sued them in Texas and New York.
Wednesday, April 23, 2008
CLEAR CHANNEL DEAL CLEARED FOR TAKE-OFF?
Company Shares Jump as Banks Try to Avoid a Trial
Clear Channel shares rose yesterday as investors now believe that a private equity acquisition of the broadcast giant will be OK’d by banks funding the $27 billion takeover.
Thomas H. Lee Partners and Bain Capital had rejected a proposal by the six banks, led by Citigroup and Deutsche Bank, to enter into binding arbitration to settle the purchase.
The banks’ settlement offer was seen by shareholders as a sign they are trying desperately to avoid a trial after the private equity firms sued them in Texas and New York.
Sources said the evidence that has been unearthed in pre-trial investigations contains documents and other correspondence that could potentially damage the banks' reputations.
Shareholders are expected to attend hearings on the two sides' motions for summary judgment, while the banks meet with TH Lee and Bain in Boston to try to hammer out an agreement.
