Filed under: Deals, Citigroup Inc. (C), Clear Channel Commun (CCU), Morgan Stanley (MS), Wachovia Corp (WB)
Just a few weeks ago, it looked like the $19.4 billion buyout of Clear Channel Communications (NYSE: CCU) was dead. But in the deal market, things can change quickly.
Just this day, the New York Supreme Court stated there will be a stay on the litigation on the deal. According to CNBC, it looks like the celebrations are engaged in heavy settlement talk.
No doubt, a trial could be problematic for the banks that are on the hook for $22 billion in debt financing. These banks include: Citigroup (NYSE: C), Credit Suisse (NYSE: CS), Morgan Stanley (NYSE: MS), Royal Bank of Scotland, Deutsche Bank AG and Wachovia (NYSE: WB).
Now, they might be willing to fund the deal.
Why? Well, it looks like the debt markets are improving and the major banks have worked hard to boost their balance sheets.
In other words, the US credit crunch may be thawing. If so, we might see some more dealmaking - which would be a relief for Wall Street banks eager to get some juicy fees.
So far in today’s trading, Clear Channel’s shares are up 9.5%.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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