Clear Channel Seeks Support of Proposed Merger
Mar 5, 2007 9:22 AM
San Antonio - Mar 2, 2007 - Clear Channel Communications has mailed a letter to its shareholders regarding the proposed merger with a group led by T.H. Lee Partners and Bain Capital Partners for $37.60 per share in cash. The letter relates to a March 21 special meeting of Clear Channel shareholders. The all-cash consideration of $37.60 per share represents a premium that is greater than 25 percent higher than average share prices before the announcement of the merger.
The proposed action is the next step in Clear Channel's process to take the company private. According to the letter, Clear Channel contacted "virtually every leading private equity sponsor" but "no strategic buyers emerged." It was also noted that Clear Channel chairman and founder L. Lowry Mays has informed the company that he will sell a substantial majority of his holdings in the transaction.
The letter to stockholders urges them to vote for the merger. It also notes that not voting is the same as voting no. Approval of the merger agreement requires the affirmative vote of 2/3 of Clear Channel's outstanding shares.
Thomas H. Lee Partners is a private equity investment firm that was founded in 1974. Bain Capital Partners was created in 1984.