• by Erik Sass , May 8, 2007

Scrambling to save a proposed buyout by private equity, Clear Channel Communications has changed the date that shareholders can vote. It has pushed back the meeting from May 8 to May 22. The new delay will give the board of directors more time to negotiate better terms with Thomas H. Lee and Partners and Bain Capital, the two private-equity firms courting the company.

The Clear Channel deal has met with repeated opposition from major stakeholders, including Highfields Capital Management and Fidelity Management and Research, as well as Institutional Shareholder Services. All are holding out for a higher bid.

Over the last few months, their dissent has forced the two private-equity firms to raise their offering price-per-share from $37.60 to $39.00 to the most recent bid of $39.20, with concomitant delays in the shareholder meeting for each new negotiation.

After the last bid, the board of directors nixed the deal, saying it didn't have enough votes to succeed. But the $39.20 may have impressed previous opponents. According to a statement released by Clear Channel, "a number of shareholders of Clear Channel, including some of its largest shareholders, have contacted members of the board or its financial advisor and asked the board to delay the date of the special meeting in order to provide them an opportunity to consult with the board on the proposed change in structure or terms."

Those who are resisting the private bid believe the share price can rise higher if Clear Channel stays public.