Privatizing Clear Channel
The media giant Clear Channel has been in the process of a buyout since at least November of last year and has plans to close the deal sometime this year. Private investors (also known as equity investors) originally offered a deal to Clear Channel shareholders to purchase their shares at $38 each. The private investors would also assume about $8 Billion in debt in the deal. Recently however, the buyout vote has been moved back to May 8 with the proposition of an added “sweetener”–an extra dollar per share. The original bid was $18.7 Billion minus the $8 Billion in debt, however, with the sweetener, the current bid has jumped to $19.35 Billion.
Clear Channel stock closed at $36.23 on the NYSE last Thursday, a drop of almost $0.50 per share. The private investors are obviously speculators, but they are highly interested in the potential for big returns with the company.
Check out an article here
and here as well