Monday, February 25, 2008
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.