Clear Channel Communications’ plans to go private may fall through.
On November 16, 2006, Clear Channel announced that it would sign a deal to be bought out by two private-equity firms, Thomas H. Lee Partners and Bain Capital Partners for $18.7 billion, which is just under a 10 percent premium above its closing price of $35.36 a share on November 16.
The deal was to be signed in 2007, but there were still some disagreements. The current offer by Thomas H. Lee and Bain Capital Partners is $39.20 a share, thus making a deal $19 billion worth.
But the upcoming deal may cease to exist at all due to credit terms those private-equity firms were trying to put into place to finance the transaction.
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969