SAN ANTONIO, Texas: The legal dispute between Clear Channel Communications and the six banks financing its sale to a private equity partnership has finally been settled.
America's biggest radio-station owner has agreed to a reduced $17.9 billion (€11.5bn; £9.2bn) acquisition offer, ending Clear Channel's tortuous two year effort to take itself private.
The company agreed to sell to Bain Capital and THL Partners for $19.5bn last May, just as the credit squeeze was beginning to bite. At which point the legal wrangles began.
Bain and THL sued the finance houses, accusing them of trying to undermine the deal by changing the terms. The banks alleged the buyout firms refused to negotiate the lending terms in good faith.
Comments Clear Channel ceo Mark Mays: "This revised agreement is a win for our shareholders because it provides them with substantial value and certainty while avoiding the delay and inherent risks associated with complex litigation."
Data sourced from International Herald-Tribune; additional content by WARC staff