Washington - The U.S. Justice Dept. has approved the buyout of radio giant Clear Channel Communications (NYSE: CCU) by private equity firms Bain Capital and Thomas H. Lee Partners, provided the company divest radio stations in Cincinnati, Houston, Las Vegas and San Francisco.

The Justice Dept. said that the two private equity firms already have substantial ownership interests in two firms that compete with Clear Channel in those cities, namely, Cumulus Media and Univision.

"Without the divestitures obtained by the department, advertisers that rely on radio advertising in the affected cities likely would have faced higher prices," said Thomas O. Barnett, Assistant Attorney General in charge of the department's antitrust division.

"The divestitures will ensure that advertisers will continue to receive the benefits of competition."

Reuters reports the deal may be in jeopardy, however, due to the weakened economy and credit crunch; Clear Channel shares have been trading below the agreed upon purchase price in recent weeks.

Related Links:
http://www.usdoj.gov/atr/public/press_releases/2008/230124.htm

http://tinyurl.com/3bko9o (Reuters)

http://www.clearchannel.com