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Investors ‘Seem Happy’ With Clear Channel News

Clear Channel and its buyers had sued a consortium of banks; this week’s agreement settles those lawsuits.

Shareholders “are likely not to squabble about the sale price,” Forbes reports about this week’s Clear Channel deal.

It quotes James B. Boyle of C.L. King & Associates saying the lower offer should be justifiable given the sluggishness in the radio business sector. The buyout still requires shareholder approval.

The company and private-equity firms Thomas H. Lee Partners and Bain Capital agreed to a lower sale price of $17.9 billion, or $36 per share. The price was lower than had been finalized in 2006, thanks to subsequent changes in credit markets and declines in radio profits in general. The original price was $39.20.

The broadcaster expects the deal to close by the end of the third quarter, the Associated Press reported.

AP reported the agreement reduces the deal’s value to $17.9 billion from $19.5 billion.

Clear Channel and its buyers had sued a consortium of banks; this week’s agreement settles those lawsuits.

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