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clear channel communication posts

Option Update: Clear Channel call active as shares rally on reports of trial delay

Posted May 12th 2008 11:00AM by Paul Foster (RSS feed)
Filed under: Major Movement, , Options

Clear Channel (NYSE: CCU) is recently up $1.70 to $31.96.

Thomas H. Lee Partners and Bain Capital have filed suits to try to force a bank group to fund their $19 billion buyout of CCU. The bank group is asking the courts to dismiss a part of the litigation.

Bloomberg is reporting that the CCU trail in New York State Court has been delayed by one day and that lawyers decline to comment on whether a settlement is in the works.

CCU call option volume of 23,870 contracts compares to put volume of 5,295 contracts. CCU May 32.5 straddle is priced at $4.10. CCU June option implied volatility of 89 is above its 26-week average of 61 according to Track Data, suggesting larger price risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Cramer on BloggingStocks: Rationality's price

Posted Mar 28th 2008 8:50AM by Jim Cramer (RSS feed)
Filed under: Deals, Private Equity, Market Matters, , Cramer on BloggingStocks

TheStreet.com's Jim Cramer wonders what's going on with the Clear Channel deal.

The focus on this Clear Channel (NYSE: CCU) (Cramer's Take) breakdown, the endless focus, is on the $500 million that the private-equity team, Bain/Lee, will have to pay Clear Channel.

What's more important, I believe, is the billions of dollars I believe the bankers will owe Bain/Lee if they don't find some way to cut this price and make this deal smaller.

There have been dozens of deals that were struck during this period that the bankers wished they could walk away from but didn't. Which says to me, how desperate are they now NOT to have to pay the $22 billion in this very large deal. How desperate are they given the fact that a judge will, I believe, find against them and the damages will be immense, as big as the billions that Lee/Bain can show -- and will -- they would have made if the deal closed in the out years.

Continue reading Cramer on BloggingStocks: Rationality's price