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After a New York trial over litigation that Clear Channel Communications Inc.'s private equity backers brought against their banks was adjourned for a day, shares of the radio broadcaster shot up $1.28, or more than 4.25%, to $31.28 during Monday morning trading. A Texas State Court hearing was also adjourned. The parties are said to be in talks to resolve the dispute over financing for the $25 billion buyout.
Bain Capital LLC and Thomas H. Lee Partners LP sued in New York state to enforce the letters of commitment underlying the buyout. New York State Supreme Court Judge Helen Freedman rescheduled the trial to start on Tuesday morning.
Clear Channel and the firms have filed suit in Texas state court charging the lenders with tortuous interference with the deal. A Texas hearing commenced, but was also adjourned. Bain and THL Partners agreed to pay shareholders $39.20. Because the deal did not close by the first of the year, terms stipulate that the price of the sale would increase if the parties can consummate the transaction. A spokesman for Citigroup Inc., Deutsche Bank AG, Credit Suisse Securities LLC, Morgan Stanley, Royal Bank of Scotland Group plc and Wachovia Corp. declined to comment. A spokesman for the private equity firms could not immediately be reached Monday morning. A spokeswoman for Clear Channel also would not comment on the litigation. Additional coverage will come later in The Daily Deal and on TheDeal.com. - Chris Nolter and Scott Stuart See Dealwatch: Clear Channel Categories Deal Video
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