Clear Channel Communications (NYSE:CCU) may find its deal with private equity firms Thomas H. Lee Partners and Bain Capital Partners in danger after reports surfaced today that Fidelity Invesments may oppose the merger. A person familiar with the situation said that Clear Channel's largest shareholder believes that the $37.60 takeover offer is too low and that the mutual fund giant would be seeking a higher price. Fred Moran, an analyst at Stanford Group, said that "to feel comfortable supporting the buyout, the shareholders are looking for a sweetener, but whether Bain and Lee will consider doing so is a real question". According to a regulatory filing, the company needs a 2/3 shareholder approval in order for the deal to go through. Moreover, if a higher price is demanded, it could put the entire deal in jeopardy. This is definitely a stock to keep an eye on as the deal draws closer.

Clear Channel's principal activities are carried out through three business segments: Radio Broadcasting, International Outdoor Advertising and Americas Outdoor Advertising. As of Dec 2005, the Group owned 1,182 domestic radio stations and owned a national radio network. In addition, the Group held equity interests in various domestic and international radio broadcasting companies. Outdoor advertising comprises an inventory of both domestic and international display faces. As of December 31, 2005, they owned and operated 164,634 Americas Outdoor Advertising and 710,638 International Outdoor Advertising. They also own or program 41 television stations, a media representation firm, in the Internet industry. On December 21, 2005, the Group Spun-off their live entertainment segment and sports representation business.

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