Investors Worry Clear Channel Sale Is Off the Air

Credit worries and a slumping stock price have Wall Street worried the deal is done
By Jim O'Neill,  Newser Staff
Posted Jan 30, 2008 3:22 PM CST
Investors Worry Clear Channel Sale Is Off the Air
Clear Channel Communications Inc. headquarters are seen in San Antonio in this Aug. 8, 2006 file photo. A $19 billion deal for the radio station and billboard advertising leader may be on shaky ground.   (Associated Press)

Optimism on Wall Street about Clear Channel's $19 billion equity buyout is fading and its share price is spiraling lower as the deal, more than a year in the making, appears to be unraveling—done in by regulatory issues, credit worries, and deteriorating industry conditions, the Wall Street Journal reports. 

Clear Channel’s stock has plummeted 7.2%, cutting the company’s value by $2.3 billion in just two days. Jittery investors are hedging their bets in part because other high-profile private equity deals, including for SLM Corp., United Rentals, and Alliance Date Systems, recently have fallen through. Clear Channel and its buyers, Thomas H Lee Partners and Bain Capital, have remained mum, increasing investor jitters. (Read more Clear Channel stories.)

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