Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, February 25, 2008

Wachovia Backs Out of Clear Channel Sale of TV Stations

While Clear Channel and Providence Equity Partners renegotiated their deal and reduced the price that Providence will pay for a group of television stations, Wachovia, one of the three banks that agreed to finance the original deal, went to court seeking a declaratory judgment that it has no obligations under the revised deal.  If the deal falls through, Wachovia may have to pay the $45 million breakup fee to Clear Channel.  In addition, while the deals are not related, it raises additional doubt about the $20 billion buyout of Clear Channel, since Wachovia is one of the banks financing that deal.  WSJ, Clear Channel, Providence Agree on TV-Station Deal; NYTimes, Bank’s Suit May Hurt Deal for Clear Channel Unit.

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