Big shareholder to vote against Clear Channel sale

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Thu Mar 22, 2007 8:14pm EDT

SAN FRANCISCO, March 22 (Reuters) - Highfields Capital Management, which owns roughly 5 percent of Clear Channel Communications Inc. (CCU.N), said on Thursday it would vote against a proposed $19 billion buyout of the largest U.S. radio station operator.

The investment firm said it would use the votes representing its 25 million shares to oppose the deal on the grounds that Clear Channel's long-term value was worth more than the $37.60-per-share offer.

"We have repeatedly expressed our strong preference to remain shareholders of a public Clear Channel and allow the company time to unlock for all shareholders the same higher values targeted by the private buyers," Highfields said in a statement.

Clear Channel, which agreed to the all-cash offer last November from the company's founding Mays family and private equity firms Bain Capital and Thomas H. Lee Partners [THL.UL], was not available for comment.

Others have expressed dissatisfaction with the deal, with analysts citing the sharply rising value of Clear Channel's 90-percent-owned billboard business as a reason.

Clear Channel shares closed up slightly at $35.64 on the New York Stock Exchange on Thursday.

((Reporting by Michael Kahn; editing by Braden Reddall; Reuters Messaging: rm://michael.kahn.reuters.com@reuters.net; e-mail: michael.kahn@reuters.com; Tel: +1 415-677-2511)) Keywords: CLEARCHANNEL SHAREHOLDER/

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