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.