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After months of speculation about the $26 billion buyout of Clear Channel Communications Inc., the broadcaster and the two private equity firms that insist they still want to buy it are taking their banks into court.
Clear Channel and the buyers announced after the market closed Wednesday that they had brought three suits against a Citigroup Inc. led lending syndicate that agreed more than a year ago, when the credit markets were robust, to finance the massive take-private. Late Wednesday, Clear Channel said it had scored an initial victory in the case when Judge John Gabriel of the Bexar County district court in Texas found that the company would suffer irreparable harm if the banks refused to fund the merger.
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In other deal news, ConAgra Foods Inc. said it will sell its commodity trading and merchandising operations to an investment group led by Ospraie Special Opportunities fund for about $2.1 billion. The fund is an affiliate of Ospraie Management, which focuses exclusively on commodities and basic industries.
Card issuer American Express Co. agreed to buy commercial credit card and corporate purchasing unit Corporate Payment Services from General Electric Co. for $1.1 billion in cash.
The purchase is in line with Amex's attempts to focus on its traditional card business, including the card payment operations. The New York-based card company had the cash on hand because it agreed to sell its international banking business to Britain's Standard Charter plc last September for $1.1 billion. -
Peter Moreira
