Friday, May 4, 2007
Is it over yet? The board of directors at Clear Channel Communications rejected a revised LBO bid from two equity firms that would have increased the per share price from $39 to $39.20 and would have given the shareholders up to a 30% interest in the restructured company ("stub equity"). A two-thirds shareholder vote is necessary to approve the deal, and early returns on the $39 per share price show the votes were not there, as major shareholders and proxy advisors hold out for a higher price. See Clear Channel Board Rejects weetened Offer From Bidder; WSJ, Clear Channel Rejects Firms' Revised Offer.