NEW YORK (Reuters) -
Confusion surrounds the buyout of
Clear Channel Communications due to tensions between the
private equity companies behind the deal and the banks that
have agreed to finance it, according to a report in the Wall
Street Journal on Thursday.
The paper said it was unclear whether the deal would close
even as a key deadline approaches by the end of next week.
Citing people close to three of the five banks funding the
deal, the Journal reported the syndicate of banks was prepared
to go ahead with the deal but blamed private equity firms
Thomas H. Lee and Bain Capital for delaying the close. It said
people close to the equity firms say the banks are holding up
the deal.
The private equity firms agreed to pay $39.20 or nearly $20
billion for Clear Channel last May. Clear Channel's shares
closed down $3.20 to $32.60 on Wednesday.
There have been concerns in the market about the ability of
the firms to complete the buyout because the recent credit
market turmoil has made financing large leveraged deals
difficult.
Clear Channel was not immediately available for comment.
(Reporting by Yinka Adegoke; Editing by Erica Billingham)
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