Fools, put a fork in Clear Channel Communications'
Let's review the bidding here. In November, a group led by Bain Capital Partners LLC and Thomas Lee Partners LP, along with members of the company's founding Mays family, proposed to pay shareholders $37.60 a share -- or a total of nearly $19 billion -- for their Clear Channel shares. Almost immediately, Fidelity Investments, the world's biggest institutional investor and Clear Channel's largest shareholder, expressed consternation at the per-share offering level. Fidelity cited an analysis by advisory firm Glass Lewis that the nation's preeminent radio station operator really was worth $39.71-$41.40 a share.
The brouhaha didn't end there. Fidelity was joined by the company's second-largest shareholder, Highfields Capital Management -- together, the two money managers own nearly 15% of the total -- in protesting that the private equity offer wasn't enough. Then Institutional Shareholder Services, a respected New York-based proxy advisory firm, recently urged shareholders to vote "no" on April 19. That voting date is already a pushback from March 19, when the company's holders were originally scheduled to affirm or reject the deal.
Opponents of the buyout point to Clear Channel's 90% ownership of Clear Channel Outdoor
In the period leading up to the vote, Clear Channel Communications' CEO Mark Mays and his brother Randall, the company's president -- both sons of the company's founder, Lowry Mays -- have met with the company's largest investors in an effort to gain support for the buyout. They've been aided by their advisor, Goldman Sachs
But as I indicated above, everything suggests that Clear Channel Communications won't go private. Absent a sweetened offer, and once the "no" vote has been recorded in about two weeks, Fools would be well advised to monitor Clear Channel's progress carefully. Management will have a renewed incentive to seek increased shareholder value, from which Foolish investors seemingly could benefit.
We're clearly channeling related Foolishness:
If you're an investor on the lookout for great values in the stock market, you might welcome a free 30-day trial to the Motley Fool Inside Value newsletter service. You'll get access to every single buy report, along with the research and community discussion for each one. Just sign up to start your trial today.
More from The Motley Fool
United Breweries Keeps Moving Ahead
Find out how much faster the Chilean beverage maker is growing now.
Tough Economic Conditions Can't Hold United Breweries Back
The Chilean beverage maker was able to grow sales and profits despite a challenging environment.
United Breweries Sees Growth Rates Slow
A sluggish economic environment weighed on the Chilean beverage maker's results somewhat.