SAN ANTONIO (CelebrityAccess MediaWire) — Clear Channel Investors hoping for a taste of the 19 billion dollar buyout deal for radio conglomerate Clear Channel by Thomas H. Lee Partners and Bain Capital are starting to get nervous.
The Wall Street Journal has reported that people on both sides of the deal have been suspiciously close-mouthed about the disposition of the sale. However, the five banks backing the deal have been under increasing pressure from an increasingly volatile stock market and tightening credit situation as the sub-prime debacle continues to develop.
Morgan Stanley alone has written off almost $9 billion in losses in the last few months. This is compounded by an ugly quarter for Clear Channel as well. A recent memo, reported by the WSJ, has company head John Hogan telling managers that they will need to make budget cuts.
"No one anticipated how challenging Q1 would be for us." said Hogan in the memo. Talks are still underway and the hedge funds, if they withdraw, will still suffer massive penalties for backing out of the deal. – CelebrityAccess Staff Writers