User 189667

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    • Clear Channel Shareholders Get Shafted [view article]
      As I emailed the company and Highfield, the stated problem was the bank's fair value accounting issue. That problem was market driven and mostly reflected the risk-based pricing in the current market disruption. That is quite a bit different than the actual credit risk embedded in Clear Channel's operations.

      I said the solution was so obvious that I did not bother to contact Clear Channel or Highland several weeks ago.

      That issue could, as you noted, be solved with the $3.20

      I wondered why would you sacrifice $3.20 per share when putting the $3.20 in escrow offering to buy the top riskiest slice of the debt for the $2.1 billion would make the fair value issue go away. It would have a two or three time limit and would preserve the chance for the $2.1 billion to go back to shareholders as the markets eventually normalize.

      Ofr course, we both think the real issue was not fair market accounting losses but the underlying implicit unsaid message that, unless we get what we want, the deal will unwind and the stock will sink.

      You're comments are right on.       May 15 08:35 PM
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