JP Morgan: Q1 Close Seen at Clear Channel

The satellite merger is not the only deal in front of regulators; the DOJ and FCC also are reviewing Clear Channel’s deal to go private.
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The satellite merger is not the only deal in front of regulators; the DOJ and FCC also are reviewing Clear Channel’s deal to go private.

JP Morgan analysts John Blackledge and Aaron Chew say Clear Channel now expects the deal to close in the first quarter of the coming year, later than the December target it had set earlier.

The original terms of the deal allowed either CCU or its pending buyers Bain Capital and Thomas H. Lee Partners to terminate the merger agreement on Dec. 12.

“Shareholders are to receive extra compensation after 12/31/07,” stated the analysts in a report to clients. “According to the terms of the merger agreement, shareholders will receive additional compensation for each day after Jan. 1 until the deal closes. Assuming a close at the end of 1Q08, we estimate this equates to (at most) additional compensation of 2% of the deal price.”

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