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$35.17 0.02 (0.06%)
7/18/2008 4:02 PM

Clear Channel Communications, Inc. (CCU)

CAPS Rating:
**

The Company is a diversified media company with three principal business segments: radio broadcasting, Americas outdoor advertising and international outdoor advertising.

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Avatar btown819 (55.61) Submitted: 4/04/08 12:49 PM : Outperform Start Price: $29.10 CCU Score: 28.30

Arbitrage. $39.20/share offer price offered by Bain Capital and Thomas H. Lee Partners. They have the intent to see this acquisition through. This is a suspected value play that may require prodding of management to unlock. The deal breaker may be the lenders who agreed to fund the buyout. They are Citigroup, Credit Suisse Group, Deutsche Bank AG, Morgan Stanley, the Royal Bank of Scotland, and Wachovia. It's clear they do not intend the deal to go through [at least without more favorable terms for the banks], even though they've made an agreement over a year ago. Trial in this case is currently scheduled for May 5, 2008. Currently trading below $29/share. Closing the deal without amended terms represents a 35%+ gain over today's current price. Failure for the deal to close could also result in significant downside.

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