Wachovia to bust Clear Channel deal

Do banks hold the keys to big deals now? We've mentioned recently that banks are being advised that it would be cheaper to walk away from deals (and pay the breakup fee) rather than to take a loss. Wachovia seems to have taken this notion to heart. In the $1.2 billion sale of Clear Channel's television unit to Providence Equity Partners, the buyout firm and the company struck a redrawn deal that lowered the price by $100 million. The New York Times reports, however, that Wachovia is throwing a wrench in the works. One of three banks that agreed to finance the original transaction, Wachovia now is refusing to move forward. It sued Providence, arguing the new agreement has voided its participation.

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

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