Clear Channel Sale Is Threatened As Shareholder Discontent Mounts

CLEAR CHANNEL SALE IS THREATENED AS SHAREHOLDER DISCONTENT MOUNTS
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman dennis.berman@wsj.com and Sarah McBride]
Large shareholders of Clear Channel Communications Inc. have begun voicing resistance to the big radio firm's $18 billion sale, dissent that could jeopardize the transaction. In recent weeks, Clear Channel's largest holder, Fidelity Management & Research Co., has made its displeasure known about the company's sale to Thomas H. Lee Partners and Bain Capital Partners, according to people familiar with the matter. A number of the company's top 10 holders also have been upset about the terms, these people said, and have been talking to the company about their positions. The private-equity firms are in a tight spot because the transaction requires that two-thirds of outstanding votes be in favor. Given that a percentage of shares usually are not voted in merger approvals, a dissenting group with a relatively small number of shares could theoretically squelch the transaction.
http://online.wsj.com/article/SB116909478729079956.html?mod=todays_us_money_and_investing
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