Private equity deal spreads may pay off-Barron's

Sun Nov 25, 2007 6:20pm EST
 
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NEW YORK, Nov 25 (Reuters) - Despite worries that shaky credit markets will hurt financing for private equity deals, some companies may still see their deals go through close to their original offer prices, business newspaper Barron's reported in its Nov. 26 edition.

Shares of U.S. radio operator Clear Channel Communications Inc (CCU.N), and casino operator Harrah's Entertainment HET.N, which are trading below their offer prices, could surprise traders if their deals close at the originally offered prices, Barron's reported.

Bain Capital and Thomas H. Lee partners have offered to buy Clear Channel for $39.20 per share, and Apollo Management and Texas Pacific Group agreed to acquire Harrah's for $90 per share.

But on Friday, shares of Clear Channel closed at $33.68 and shares of Harrah's closed at $87.14 on the New York Stock Exchange.

But odds that the deals will go through are strong, Barron's reported.

The article also cited Canadian telephone company BCE Inc (BCE.TO), and Commerce Bancorp Inc CBH.N, as other stocks with "pre-deal" spreads.

(Reporting by Emily Chasan; Editing by Kenneth Barry)

 

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