Clear Channel $20bn private equity buyout in jeopardy

by Staff, Brand Republic 26-Mar-08, 09:45

NEW YORK - The planned private equity buyout of Clear Channel, worth in the region of $20bn (£10bn), looks set to fall through as banks become wary of financing the deal.

Clear Channel had agreed to be bought by private equity firms Thomas H Lee Partners and Bain Capital Partners last year, but reports say that it is now unlikely that banks will finance the deal.

The Wall Street Journal reports a source close to the deal saying: "Right now, there is no credit agreement. And without a credit agreement, we have no deal."

Banks including Citigroup and the Royal Bank of Scotland had agreed to finance the deal, which was set out last year.

Clear Channel, which is the biggest US radio broadcaster, has not commented specifically on the report, but said in a statement last night that it expected the deal to be finished by the end of the quarter.

Shares in the company were down by more than 20% in after-hours trading -- trading at $25.60 compared with $32.56 at the close of the US markets. It is listed on the New York Stock Exchange.

Clear Channel, headquartered in San Antonio, Texas, operates more than 1,100 radio stations, drawing in 100m listeners a week. It syndicates programmes by well-known personalities including Rush Limbaugh, Ryan Seacrest, Casey Kasem and Carson Daly.