SAN FRANCISCO (Reuters) – Clear Channel Communications Inc. (CCU) said on Wednesday that its $17.9 billion takeover by private equity funds Thomas H. Lee Partners THL.UL and Bain Capital is now fully funded in escrow with the Bank of New York.
The U.S. radio station operator also said that it expects the transaction to close by the end of the third quarter. Under the terms of the amended merger agreement, Clear Channel shareholders will receive $36 in cash or stock for each share they own, Clear Channel said in a statement.
Earlier in May, the bank syndicate, the private equity buyers and Clear Channel struck a deal to lower the deal's price and settle litigation among the parties.
In March, THL and Bain filed complaints in New York and Texas against the six Wall Street banks — Citigroup Inc (C.N: Quote, Profile, Research), Morgan Stanley (MS.N: Quote, Profile, Research), Credit Suisse Group (CSGN.VX: Quote, Profile, Research), Royal Bank of Scotland Group Plc (RBS.L: Quote, Profile, Research), Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research) and Wachovia Corp (WB.N: Quote, Profile, Research) — to enforce their agreement to fund the buyout.
Central to the dispute was the hit the banks would take in funding the transaction, given deteriorated lending conditions.
(Reporting by Duncan Martell; Editing by Gary Hill)