Clear Channel board reverses bid rejection

Clear Channel’s board is now in talks with Bain Capital and TH Lee regarding the sweetened offer it rejected last week. This latest twist comes one day before shareholders were meant to vote on the buyout.

Clear Channel Communications has said it is now discussing an amended bid from Bain Capital Partners and Thomas H. Lee Partners that it refused to accept last week. It has subsequently postponed a shareholder meeting scheduled for Tuesday.

Now under consideration is a revised bid the board rejected Thursday: The private equity firms have offered shareholders $39.20 per share instead of $39 per share, as well as a choice between cash and stock (capped at a 30 percent equity stake).

Last week, the board said accepting the proposal would further delay a vote on the buyout, originally announced in November. It also said that when TH Lee and Bain upped their offer to $39 per share from $37.60 per share, significant shareholders voiced opposition to the price and expressed lack of interest in stub equity.

Since last week’s rejection of the firms’ third offer, however, a number of shareholders have asked the board to delay the vote and review the newest proposal, it said in a statement.

The shareholders’ vote on the buyout is now scheduled for 22 May. Two-thirds of shareholders must approve the buyout, in line with Texas law.