Clear Channel deal morphs into test of wills

Has a great private equity firms vs. shareholders battle begun? Well, it sure has when it comes to Clear Channel Communications. Shareholders have been more than pissed about the $18.7 billion deal management struck with Thomas H. Lee Partners and Bain Capital. The sale would be the largest buyout in the media industry, but the likes of Fidelity Investments say they are getting a bum deal. They say the deal sorely undervalues their holdings. So the annual meeting, three weeks away, is shaping up as a real fight. Fidelity and others will likely vote against the deal. But the would-be buyers are standing firm. In fact, they say they will walk away if the deal is voted down. One issue here is whether this will become a harbinger. If the shareholders succeed, my bet is that we will see more.

For more:
- here's a New York Times article
- more private equity news