Sunday, March 16, 2008

Clear Channel says completes TV sale for $1.1 bln


By Megan Davies


NEW YORK (Reuters) -
U.S. radio operator Clear Channel
Communications Inc
said on Friday it completed the sale of its
television assets to Newport Television LLC, a company set up
by Providence Equity Partners to make the acquisition, for $1.1
billion.

The deal brings to a close months of twists and turns about
the deal, which looked at times as if it would falter.

Clear Channel agreed to sell the 56 television stations to
Providence in April 2007 for $1.2 billion but the deal faltered
amid the market turmoil and was renegotiated to a lower price.

The deal hit turmoil when Clear Channel filed a lawsuit
February 15 in Delaware to force Providence to complete the
deal. Providence called the suit "baseless." To settle the
dispute, Clear Channel agreed to cut its asking price by $100
million to $1.1 billion.

Another complication arose when Wachovia, one of the banks
financing the deal, filed a suit in North Carolina against
Newport dated February 22 to get out of the financing
commitment. Newport retaliated and filed a lawsuit against
Wachovia in Delaware, seeking a break-up fee and expenses
unless the financing was provided.

A spokeswoman for Wachovia said on Friday that the
litigation claims were dismissed as part of the new deal. She
added that the bank was pleased that all parties had agreed
upon the new transaction.

The TV deal is not related to the $20 billion leveraged
buyout of Clear Channel, agreed last year but which is yet to
close. Clear Channel, being bought by private equity firms
Thomas H. Lee Partners and Bain Capital Partners LLC.

(Reporting by Megan Davies; editing by Carol Bishopric)

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