Clear Channel, Providence Equity at odds<br> over delays in TV-group sale

PROVIDENCE – Providence Equity Partners says all bets are off for its planned acquisition of Clear Channel Communications Inc.’s 56-station Television Group, according to the Web-based private equity Hub.
In a lawsuit filed Friday in the Delaware Court of Chancery, Clear Channel seeks to force a closing in the $1.2 billion deal with Newport Television LLC, a special-purpose subsidiary established by Providence Equity for this transaction. The media company already had agreed to one deadline extension.
“We are surprised and disappointed that Clear Channel would suddenly bring this baseless lawsuit,” the equity firm said in a statement.
Clear Channel’s suit accuses Providence Equity of causing undue delays – a complaint the media and entertainment company had first made public in early November, in a regulatory filing (READ MORE) – and attempting to renegotiate terms after the contract was signed.
The equity firm responded that it has been seeking “a mutually acceptable arrangement in difficult market conditions.”
The deal, tentatively approved by the Federal Communications Commission in November, includes a $45.9 million termination fee. But in its statement, Providence Equity said that, “under the terms of the contract, this fee is no longer payable, because Clear Channel has commenced this litigation.”
The Television Group deal is separate from Clear Channel’s pending $39.20 per share acquisition by an investors group led by Thomas H. Lee Partners and Bain Capital. That merger, approved by the media company’s shareholders on Sept. 25, has a termination date June 12. (READ MORE)
San Antonio-based Clear Channel Communications Inc. (NYSE: CCU) is a global media and entertainment company whose properties include local radio stations WHJY-FM, WHJJ-FM, WSNE-FM and WHJJ-AM. Additional information is available at www.clearchannel.com.
Providence Equity Partners Inc. – a private investment firm based in Providence, with offices in New York City and London – specializes in media, entertainment, communications and information companies. It has raised $21 billion through seven funds since its founding in 1989. To learn more, visit www.provequity.com.