CalPERS will support the revised Clear Channel Communications Inc. buyout deal announced today by the company. The $245.3 billion California Public Employees Retirement System, Sacramento which has 3,336,611 shares in the company had planned to vote against the original deal.
We like the latest offer, said Clark McKinley, CalPERS spokesman. Its slightly higher, and it gives us a chance to participate in the private equity component. In our experience, private equity has generally restructured companies, improved performance and given us a good return.
A private equity group co-led by Thomas H. Lee Partners and Bain Capital Partners, which proposed acquiring the company, increased its offer to $39.20 in cash per share from $39, according to a company statement. It also offered Clear Channel shareholders an alternative of exchanging Clear Channel shares for up to 30% in total, or $1.2 billion in value, of stock in the new corporation.
CalPERS has committed $740 million to four partnerships of Thomas H. Lee Partners, according to a CalPERS report. CalPERS is not an investor in Bain partnerships, the report said. Mr. McKinley declined to say if CalPERS has a stake in either THL or Bain.