Story Created:
May 14, 2008 at 9:41 AM CDT
Story Updated:
May 14, 2008 at 9:41 AM CDT
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 17.9 billion.
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.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
AP-NY-05-14-08 0505EDT
