Clear Channel to sell TV group for $1.2 bln

By Megan Davies

NEW YORK (Reuters) - U.S. broadcaster Clear Channel Communications Inc. CCU.N said on Friday it will sell its television group to private equity firm Providence Equity Partners Inc. for about $1.2 billion.

The sale comes as Clear Channel's shareholders consider a nearly $19.5 billion, or $39 a share, private equity buyout offer for the company.

Bidders Thomas H. Lee and Bain Capital raised their offer for Clear Channel earlier this week from the original bid of $37.60. It is still unclear whether they will persuade enough shareholders to support the deal at a scheduled vote on May 8.

In November Clear Channel announced plans to sell the television group as well as 448 of its 1,150 radio stations when it agreed to the original buyout deal with T.H. Lee and Bain.

It said on Friday it will sell to Providence Equity 56 television stations in 24 markets across the United States as well as their related Internet sites and wireless projects. The deal is expected to close in the fourth quarter, subject to regulatory approval.

Clear Channel said it continues to pursue the divestiture of 287 radio stations in 54 markets, having already reached agreements to sell 161 radio stations in 34 markets for a total of $331 million.

Some analysts have forecast the asset sales will bring in around $2.7 billion to $2.8 billion total.

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