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Report: Bank Wants Out of Clear Channel TV Sale

In a lawsuit filed in North Carolina Superior Court, Wachovia argued that the changes to the original terms void its agreement to finance $500 million of the deal, the Wall Street Journal reported.

Last week, we reported Providence Equity Partners didn’t want to complete its deal to buy Clear Channel’s TV stations at the agreed-upon price of more than $1.2 billion.

Now, Wachovia, which provided financing for Providence for this deal, wants out. That’s because Clear Channel and Providence changed the deal; they lowered the price to $1.1 billion, reflecting lowered radio stock prices and increased borrowing rates since a year ago, when the deal was struck.

In a lawsuit filed in North Carolina Superior Court, Wachovia argued that the changes to the original terms void its agreement to finance $500 million of the deal, the Wall Street Journal reported.

Clear Channel, we reported, filed a suit to force Providence to complete the TV deal.

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