SAN ANTONIO (CN) - The national credit crisis has caused Citigroup and other lenders to try to scuttle CC Media's $26 billion purchase of Clear Channel Communications by backing out of their promise to finance the deal, the media groups say.
Clear Channel shareholders expect $19.5 billion from the deal, "Yet, for reasons of their own, Defendants have tortiously interfered with Plaintiff's Merger Agreement, most recently, by refusing to execute necessary documents in an over effort to 'run out the clock' and cause Plaintiff's Merger Agreement to collapse," the suit states in Bexar County Court.
The Merger Agreement must close by June 12, the suit states. The defendants signed a commitment letter on May 17, 2007, and the plaintiffs say they have fulfilled their end of the deal.
Clear Channel, the nation's biggest radio and billboard operator, owns more than 900 radio stations and 800,000 billboards.
Here are the defendants: Citigroup Global Markets, Citicorp USA, Citicorp North America, Morgan Stanley Senior Funding, Credit Suisse Securities USA, RBS Securities Corp., Wachovia Investment Holdings, Wachovia Capital Markets, and Deutsche Bank Securities.
Plaintiffs' lead counsel is David Beck with Beck, Redden & Secrest of Houston.
BT Triple Crown Merger sued many of the same defendants, and others, in a similar complaint in New York County Court.