Hands have been shook, reductions have been agreed upon and litigation has been avoided in the epic transaction taking Clear Channel off the stock market and into the hands of THL Partners and Bain Capital. The next step is to get the agreement past shareholders, and that is now headed for a vote in late Q3 of this year. The drop dead date is in late Q4 – very late Q4 – 12/31/08, in fact.
CCU’s Mark Mays said, “We are very pleased to have reached this accord with our sponsors and the banks funding the transaction. 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. Our shareholders will receive a significant premium over recent stock price levels and can elect to continue to participate in our future upside.”
RBR/TVBR observation: Everybody seems very confident that this time around, shareholders will have their rubber stamps ready. But isn’t that what they thought during the first three months of 2007? Anyway, we now have three months during which the stock price can fluctuate like a butterfly and analysts, pundits and watchdogs can run around the country taking shareholders’ temperatures. And you’ll be able to tell which are against the deal – they’ll be the ones using a rectal thermometer.