CCU deadline extended to June


Clear Channel had already indicated that its going private buyout would not close until 2008. The deadline for closing is now nearly six months away. Clear Channel announced yesterday that “it has, in accordance with the terms of the merger agreement providing for the acquisition of Clear Channel by CC Media Holdings, Inc., a corporation formed by private equity funds sponsored by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P., extended to June 12, 2008, the date on which a party may terminate the merger agreement if the merger has not occurred as of that date.”

RBR observation:
Although Clear Channel’s stock has been trading about five bucks below the 39.20 buyout price, Wall Street fears that this deal might collapse seem to be overblown. If the folks at Bain and Lee wanted out, they could have done so now instead of moving the termination date ahead to June.