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Clear Channel Cautions That A Closing May Not Occur >CCU

Mar 28, 2008 Market Outlook

Clear Channel Cautions That A Closing May Not Occur >CCU

Last Update: 3/28/2008 6:35:12 AM

DOW JONES NEWSWIRES

Clear Channel Communications Inc. (CCU), whose proposed sale to Thomas H. Lee
Partners LP and Bain Capital Partners LLC is in jeopardy, Friday cautioned
markets “that a closing may not occur.”

In a filing with the Securities and Exchange Commission, the radio giant said it
continues “to be ready, willing and able to consummate the merger under the
merger agreement, which remains in effect.”

Clear Channel said it is unable, however, to estimate a closing date at this
time.

The company previously announced that it anticipated that the closing of the
merger would occur by March 31.

The Clear Channel sale for the moment has fallen into a legal tangle over the
failure to complete the transaction. Clear Channel and its private-equity buyers,
Bain Capital and THL, have filed lawsuits claiming that a syndicate of Wall
Street securities firms and banks has illegally balked at their obligation to
fund the deal.

On Thursday, a district court judge in Texas issued a restraining order
forbidding the banks from refusing to fund the merger. Later in the day, the
banks filed a notice to try to move the suit to federal court.

Clear Channel shares closed Thursday at $29.60.

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