Just a couple weeks ago, it looked like the $26 billion buyout deal for Clear Channel Communications (NYSE: CCU) was dead.But then again, doing such a deal is expensive and time-consuming. So why walk away? Maybe try to find a way to get things back on track?
Well, according to a piece in today's Wall Street Journal, the deal may actually get done.
Basically, the main opposition has come from two major shareholders: Fidelity Investments and Highfields Capital Management. They have a fiduciary responsibility to get the best value for their investors, right?
That means bidding things up. And it appears that Clear Channels buyers -- Bain Capital and Thomas H. Lee Partners -- will do just that. How much? The amount is about 20 cents to $39.20 per share.
There is something else: the existing shareholders will get a chance to participate in the private company, up to 30%. So perhaps when you blend things together, the ultimate value is higher than just 20 cents per share.
And with Clear Channel's stock at about $37.79, it does look like the Street is betting that there will indeed be a deal.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
