Hedge funds prevail, ClearChannel bid to go higher

Shareholders of ClearChannel were widely expected to reject a buyout offer from Thomas H. Lee Partners and Bain Capital. A few shareholders, notably Highfields Partners, made a huge stink about what they saw as an undervalued offer, and they appear to have won. The two private equity firms will sweeten their offer by $1.5 billion, raising it to $27.6 billion. An announcement is coming today. Until now, the firms said they could not go any higher. The new deal seems to reflect more debt, not an increased equity portion from the firms. It isn't a forgone conclusion that this offer will be viewed favorably. A shareholder vote was scheduled for this week will likely be pushed back a bit, giving people time to digest all this. Stay tuned.

For more:
- here's the New York Times article