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Finance Firms Sue Banks over Clear Channel Deal

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Finance Firms Sue Banks over Clear Channel Deal

Business

Finance Firms Sue Banks over Clear Channel Deal

Finance Firms Sue Banks over Clear Channel Deal

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Two giant finance firms are suing some of the biggest banks on Wall Street, including Citigroup and Morgan Stanley. The two private equity funds are trying to buy the nation's No. 1 radio station operator, Clear Channel, in a deal worth nearly $20 billion.

But the banks that agreed to finance the deal — back in 2006 — are backing out. They don't want to put up the money because they're worried that they won't be able to make money on the deal because of deteriorating credit markets.

The two private equity firms, Bain Capital and Thomas H. Lee Partners, are accusing the banks of breach of contract.

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