Title:

Clear Channel Communications, Inc. (M&A Insight Analysis)

Price:$450.00
Publication Date:Apr 30, 2007
Company:Clear Channel Communications, Inc.
Report Type:M&A Insight Analysis
Brief Excerpt:...In our March ## analysis, we noted that there were two camps of opinion. Today, there remain two camps. The first group is very bearish on radio and is concerned over the timing and execution of a self help plan and therefore prefers taking the bird in hand cash offer. The second group is less bearish about radio, sees significant potential upside in a standalone CCU and therefore is willing to vot e down the transaction. If CCU shareholders faced with a difficult choice at $##.##, the new $## offer clearly makes the vote decision even more challeng ing. Shareholders can accept a bird in the hand offer that arguably falls into a range of fair value, or opt for a standalone self-hel p plan that is subject as all such plans are to execution risk. No one in this process has a crystal ball, including the CCU management team who has stated to us that it s extremely challenging to predict radio s growth rate. Turning down the certain $## offer requires faith in...
Word Count:9878
Length:23 Pages
Ticker:CCU
Related Report(s):
  • Clear Channel Communications, Inc. (M&A Insight Note): $100.00
    ...This proxy analy sis and vote recommendation have not been submitted to, nor received approval from, the United St ates Securities and Ex change Commission or a ny other regulatory body . While ISS exerci sed due care in c ompiling this analysis, we make n o warr anty, express or i mplied, regarding the accuracy , completeness, or usefulness of this in formation and assume no liabili ty w ith r espect to the consequences of relying on this information for investment or other purposes. In particular, t he research and voting recommendations provided are not intended to constitute an offer, solicitation or advice to buy or sell securities. ISS is a wholly-owned s ubsidiary of RiskMetrics Group, Inc . (RMG), a provider of fi nancial risk management analytics and solutions. This issuer may b e a client of ISS, ICS, or ISS parent compa ny, R MG, or the parent of, or affilia ted w ith, a client of ISS, IC S, or RMG. ISS may in some circumstances afford iss uers, whether...
  • Clear Channel Communications, Inc. (M&A Insight Analysis): $450.00
    ...CCU is a market leader in both of its businesses, relatively underleveraged, with strong and stable cash flows exactly the characteristics that attract private equity. After speaki ng to dozens of shareholders, as well as the company and its advisors, we conclude that there appears to be a split of opinion. One camp is bearish on radio and is worried about execution ri sks of a self-help standalone plan, the financial risks that would accrue from higher leverage levels, and general market risk. This group takes some comfort in the seemingly competitive process that has resulted in a fully-financed bird in the hand $##.## per-share offer. The second camp, consisting of certain Street analysts a nd longer-term shareholders, is less bearish on radio, very bullish on outdoor, and sees significant upside from a self-h elp standalone strategy. This group acknowledges that CCU cannot leverage up to the levels that Bain and THL can, yet they believe that they can...
  • Clear Channel Communications, Inc. (M&A Insight Note): $100.00
    ...This proxy analysis and vote recommendation have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body . While ISS exercised due care in compiling this analysis, we make no warranty, express or implied, regarding the accuracy , completeness, or usefulness of this information and assume no liability with respect to the consequences of relying on this information for investment or other purposes. In particular, t he research and voting recommendations provided are not intended to constitute an offer, solicitation or advice to buy or sell securities. ISS is a wholly-owned subsidiary of RiskMetrics Group, Inc. (RMG), a provider of financial risk management analytics and solutions. This issuer may be a client of ISS, ICS, or ISS parent compa ny, RMG, or the parent of, or affiliated with, a client of ISS, IC S, or RMG. ISS may in some circumstances afford issuers, whether or not they are ICS clients,...
  • Clear Channel Communications, Inc. (M&A Insight Analysis): $450.00
    ...Source: Thomson One; $ in millions; deals selected from Br oadcast mid-industry, deal si ze > $#B, during past # years. ...
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Institutional Shareholder Services (ISS) is the leading provider of corporate governance research and analysis. The ISS Corporate Governance Quotient (CGQ) is a database and ranking system designed specifically to evaluate the quality of a company's corporate governance and board of directors. CGQ ratings are available on more than 8,500 companies worldwide. ISS' M&A Insight (M&A Insight Analysis and M&A Insight Note) is a unique offering that delivers ongoing deal notes that keep users abreast of key issues as the deal or contest evolves.

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