Clear Channel dispute resolved

The legal dispute holding back completion of the US$20bn buyout of US media group has now been resolved, albeit at a reduced price.

Clear Channel shareholders will receive US$36 per share, down from the originally agreed US$39.20, reducing the deal’s value to approximately US$17.9bn. The new US$36 per share price is less than initial offers made last year before the credit crunch that shareholders rejected as too low.

Private equity buyers Bain Capital and Thomas H. Lee Partners have agreed to deposit funds into an escrow account within 10 days in order to push through the deal, which is expected to close by the end of the third quarter, although an extended deadline of December 31 has been set.