Clear Channel acquired for billions
Clear Channel Communications, which owns radio stations in Worcester and Boston, was purchased by private equity firms for $18.7 billion, plus the assumption of repayment of $8 billion in net debt.
The acquisition was led by private equity firms Thomas H. Lee Partners LP and Bain Capital Partners LLC. The deal calls for each share of Clear Channel common stock to be purchased for $37.60 in cash, which represents a premium of pproximately 25 percent over Clear Channel's average closing share price of $29.99 during the 30 trading days ended October 24, 2006.
WSRS-FM and WTAG-AM of Worcester are two of 1,150 radio stations that Clear Channel currently owns or operates. Clear Channel also announced that it plans to sell 448 of its radio stations, and the entirety of its 42-channel television segment. The merger is not conditioned on any of these transactions.
The merger is subject to approval by Clear Channel's shareholders, requisite regulatory approvals, and customary closing conditions. Clear Channel, under the terms of the agreement, may solicit competing bids from third parties through December 7, 2006, and may negotiate with those parties responding prior to the deadline until January 5, 2007.
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