NEW YORK (Reuters) - Clear Channel Communications Inc
Talks were continuing Tuesday night, but if the matter is not resolved, the U.S. radio operator and private equity firms Thomas H. Lee Partners and Bain Capital Partners LLC might sue as soon as Wednesday, the newspaper said on Wednesday. It said the people it cited as sources were given anonymity because they were not authorized to discuss the transaction.
Bank lenders that agreed to provide financing for the
roughly $20 billion buyout include Citigroup Inc
Banks are increasingly reluctant to provide financing, a person familiar with the situation told Reuters on Tuesday.
The private equity firms agreed last year to buy Clear Channel for $39.20 per share. Clear Channel shares have traded well below that price amid concern that the leveraged buyout would join many others to fall apart since credit markets worldwide began to tighten last year.
Clear Channel shares closed Tuesday at $32.56.
Clear Channel and Thomas H. Lee Partners could not be reached overnight for comment. Bain Capital, Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley and Wachovia did not immediately return calls for comment. RBS referred queries regarding the issue to Citigroup.
(Reporting by Jonathan Stempel; Editing by Louise Ireland)
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