Posted by chicagomedia.org on July 24, 2008 at 18:20:34:
Clear Channel shareholders, meeting Thursday afternoon (July 24) at company headquarters in San Antonio, approved the privatization of the radio and outdoor behemoth, giving shareholders $36 per share. A preliminary vote count representing more than 74% of the total outstanding shares approved the offer made by a private equity investors group led by Bain Capital Partners and Thomas H. Lee Partners. The parties expect to close the deal on July 31.
The vote, and final settlement, will wrap up an incredible American media financing journey down Wall Street and through a series of courtroom appearances in Texas and New York that brought about numerous changes in the terms of the privatization deal, which began about 21 months ago, in October 2006, when the Mays family, Clear Channel's founding family who controls the largest voting block of stock, announced its intention to take the nearly four-decade-old media empire private.
After struggling to reach an agreement with shareholders to buy CCU shares at $39.20 apiece 13 months ago, the company began to focus on closing the deal, but the state of the national economy changed drastically and the six banks backing the privatization group began to run from the deal. Lawyers volleyed and thundered from both sides during springtime court exercises that concluded with each side agreeing to take a haircut of sorts. On May 13, Clear Channel agreed to a third amendment to the merger that gave shareholders $36 for each share they own.
�We are pleased with the outcome of today�s vote,� said Clear Channel CEO Mark Mays. �On behalf of Clear Channel�s board of directors, I want to thank our shareholders and hard-working employees for their support throughout this process.�
Since the deal was originally announced, Clear Channel, which once held the licenses to about 1,200 radio stations, has sold its television division and more than 300 of its small-, mid-size and large-market radio stations. The company is still the world's largest radio broadcast company with more than 800 stations to its name.
In a late-afternoon e-mail note to radio staffers throughout the nation, Mays wrote, "I'm delighted to let you know that Clear Channel's shareholders overwhelmingly approved the revised merger agreement earlier this afternoon. I'd like to take this moment to thank everyone for their focus, persistence and loyalty during what was a longer period of time than any of us had expected. It's been difficult in many ways, and as we look toward next week's closing, we can all take this as an important vote of confidence in our company and the foundation we've put in place for an even more successful future."
In an apparent attempt to calm staffers' nerves made jittery by the many changes that have taken place in the past 21 months, Mays answered his own question of "What hasn't changed?" with an attempt to soothe and inspire the workforce: "We have the best professionals in the industry. We have the best platforms for audiences, partners and advertisers. We have a bright future ahead."
Mays added, "Please join me in celebrating this milestone and looking forward to concluding this important chapter next week."
Shares of CCU closed down 34 cents at $35.50 on Thursday on the New York Stock Exchange.
(R&R)