Friday, October 27, 2006

Sirius broadcasting sector questions

well its good to see the entire hedge fund controlled media services, listed below all collectively working the same issue for their real master. How could this get past the regulators..

investments firms or clubs, hege funds ,what ever you wish to call them. Directly own the media and trade publications that continually spread mostly negative news information for the greater broadcasting sector..

does this sound correct to you station owners or investors. This group can use the media/trades they own collectively to move the very sector simply by releasing selected news articles....

they could even position or trade ahead of any news they chose.....I for one surely smell fish here.

where were the regulators how could this slip by.........? what would the Ftc say about this?

Sale Talk Drives Clear Channel To 9.7% Gain Oct. 27, 2006

By Paul Bond, The Hollywood ReporterSOURCE:

Clear Channel Communications Inc., the nation's No. 1 radio company, saw its stock jump 9.7% on Thursday (Oct. 26) -- a day after it acknowledged that it might be for sale, though the announcement encouraged its bond rating to be cut to near junk status.Shares of Clear Channel rose $3.13 to $35.48, giving the company a market capitalization of about $17.6 billion.

Standard & Poor's and Fitch Ratings cut Clear Channel's debt to "BBB-minus," their lowest investment-grade ranking."While there are numerous possible outcomes from this announcement, Fitch believes that on balance there is a higher likelihood of a negative outcome for bondholders," Fitch said."Because of the potential size of the buyout, Standard & Poor's expects the equity contribution to be small, resulting in significant levels of additional debt," S&P said.

Reports began surfacing this week that private-equity groups Kohlberg Kravis Roberts and Co., Blackstone Group and Providence Equity Partners might, as a group, make an offer for Clear Channel. Thomas H. Lee Partners might also be forming a bidding group, according to published reports. All of these firms except for Providence are investors in VNU Group, parent company of Radio & Records.

In response to all the buyout chatter, Clear Channel said late Wednesday (Oct. 25) that it has hired Goldman Sachs & Co. for assistance in "evaluating various strategic alternatives to enhance shareholder value.”Observers had been speculating on and off that Clear Channel might attract a buyer, as its share price has been on a slow, four-year slide from $50.

Some analysts were cautious Thursday, advising clients not to chase the stock higher as Clear Channel, faced with mounting competition from satellite radio and in-car iPods, might not fetch much of a premium.Stifel Nicolaus & Co. analyst Kit Spring, however, raised his price target on Clear Channel shares $2 to $38.


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