News

The US Department of Justice said in February that the nation’s largest radio station operator would have to sell stations in four cities, in order to win approval for its acquisition by a group of PE firms led by Bain Capital and Thomas H. Lee Partners. The Justice Department was acting on competition grounds, as in those cities the PE bidders already have interests in two companies that compete with the takeover target, Clear Channel Communications Inc. Despite the approval, it was thought the $22 billion deal, originally announced in 2006, risked being renegotiated or scuttled because of a downturn in the radio industry and doubts of the banks that were to provide financing. Turbulence in financial markets was proving a hurdle, as several banks were struggling to find buyers for the debt being used to fund the buy-out. However, in early March there were signs that the transaction could be completed.