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Private Equity Firms Raise Clear Channel Bid on Eve of Vote

Just 24 hours before the shareholder vote on the Clear Channel takeover bid, Thomas H. Lee Partners and Bain Capital raised their offer by more than $1.5 billion.

The private equity firms raised the bid in the face of shareholder opposition to the original offer, which shareholders were expected to reject. The new offer of about $27.6 billion equals $39 a share, compared to the $37.60 of the original bid, writes The New York Times. The new bid is expected to please some shareholders, but others, like Fidelity Investments, were hoping for at least $40 per share.

The private equity firms offered earlier this week to restructure their offer in a way that would give more value to shareholders, but Clear Channel rejected the proposal.