Clear Channel board rejects amended term sheet from equity group

By Lisa Kerner

Charlotte, N.C., May 4 - Clear Channel Communications, Inc.'s board of directors rejected the new terms and merger structure proposed by the private equity group co-led by Bain Capital Partners, LLC and Thomas H. Lee Partners, LP.

The board determined that the new price of $39.20 per share is only a 0.5% increase from the $39.00 per share price currently offered. In addition, the structure change would delay the date of the special meeting by up to 90 days, according to a company news release.

Clear Channel said that since the merger consideration was increased to $39.00 from $37.60 on April 18, significant shareholders have expressed opposition to the merger. Two institutional proxy advisory services, Institutional Shareholder Services and Glass Lewis & Co., have recommended against the merger transaction based on the too-low $39.00 per share price.

In addition, tabulated proxies received by Clear Channel's board indicate a vote against the merger.

The board decided to convene the special meeting scheduled for May 8 so shareholders can vote on the existing merger proposal.

Clear Channel is a media and entertainment company based in San Antonio, Texas.

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