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Wednesday, April 23, 2008 --- 24 days ago http://seekingalpha.com/article/73498-sponsors-have-edge-in-clear-channel-fight?
| Prince of Wall Street submits:
"This proposal is yet another disingenuous attempt by the banks to avoid living up to their commitments. The banks want to move this case into the back room because they fear that a public trial will clearly expose their misconduct," the private equity firms said in a statement.
Sounds like fighting words to the Prince. The Prince has stayed on the sidelines on the Clear Channel (CCU) dispute until this point. The buyout firms’ quick rejection of the arbitration offer from the syndicate of banks prove once again the Prince’s earlier argument (Wall Street’s Short Memory on Private Equity) about how much leverage sponsors have when it comes to negotiations on committed financings. If a group of financial sponsors wants to get get a deal done then they have very few incentives to give concessions to the banks that committed financing. The fact is the banks and the private equity firms are essentially engaged in a continuous multi-decision game and have relationships that negotiations will test. However, given the short memory of Wall Street, it is unlikely that any buyout firm will see real repercussions in the future if it forces the banks to honor their commitments. Provided the private equity firm has capital in the future to invest The Prince guarantees that there will be bankers willing to forget the past to get a deal done. Any banker threatening in committed financing negotiations t ... |
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Anytime
